The meme coin battle escalates, SEC speech leads a new era of Compliance

This week, the cryptocurrency market experienced a surge following the easing of Sino-U.S. trade relations and CPI data meeting expectations. Although there was a brief flash crash on Thursday evening, it was quickly corrected. As of now, the price of Bitcoin remains above $104,000.

The market is a mix of joy and concern. A certain trading platform initially surged after being added to the S&P 500 index, but later dropped by 7.2% due to a regulatory investigation and user data theft. FTX is about to initiate $5 billion in compensation, but the Wisconsin Investment Board has already sold its Bitcoin ETF holdings. Meanwhile, Russia has sent an additional 640,000 soldiers to Ukraine, increasing overall cautious sentiment.

The meme market has entered a heated phase. The three major platforms are engaged in fierce competition around token launches, liquidity, and community influence, staging a "meme Three Kingdoms Kill." At the same time, the SEC chairman delivered an important speech on asset tokenization, providing a clearer regulatory framework for the issuance, custody, and trading of crypto assets, signaling the arrival of a new era where compliance and mainstreaming run in parallel.

1. The meme coin war escalates

As new platforms join the opposition camp, the competition in the meme market has become increasingly fierce this week. The three major platforms are engaged in a crazy battle for Glonk's Ticker, with the founders of two platforms even calling each other out on social media, causing the meme craze to reach its peak.

1. The reason why a certain platform has become the target of criticism.

• The platform has strong cash flow and does not need to issue coins, regularly selling Solana which suppresses the price of its own coin. According to statistics, after accumulating one to two weeks of fee income, the platform will transfer SOL to exchanges for sale, totaling approximately 3.868 million SOL sold over the past year at an average price of $183.3.

• The platform dominates the Solana ecosystem, and the lack of competitive landscape is detrimental to ecological development. The platform accounts for 71% of the daily token issuance on Solana and has launched its own DEX to compete directly with other DEXs, further consolidating its market share. This dominance may stifle innovation and lead to a homogenized ecosystem.

In response to competitive pressure, the platform recently announced the launch of a creator revenue sharing program, sharing 50% of the DEX revenue with token creators.

2. The Web2 gameplay of another platform

The platform was founded by a 26-year-old Australian entrepreneur. The founder developed a game download that exceeded 500,000 at the age of 14 and dropped out of school at 15 to start a business, raising $2 million in funding.

The platform was created on Solana in January this year, with the initial token reaching a market value of 80 million USD, but it subsequently fell sharply. At the end of April, the platform was renamed and a new platform coin was launched, after which the coin price started to rise. The platform attracted market attention by launching multiple meme coins with a market value of over 10 million.

The platform has pioneered a new model for attracting traffic from Web2 to Web3. For example, a project launched by a Harvard graduate, whose founder has multiple successful cases in the Web2 field. It is difficult for ordinary investors to participate in similar projects, but the market value has quickly climbed to tens of millions. The platform has launched several "Fast Pass Plans" through this model. Due to the wealth creation effect, it is expected that more Web2 teams will join.

Recent projects launched by the platform include:

• A snake game launched by a Web2 entrepreneur with over 10 million downloads.
• Suspected token issued by OpenAI employees
• A rumored engineer from a certain tech giant ( was refuted regarding the issuance of a token ).

However, the platform's founder recently stated that they will no longer recommend new coins, but rather focus on existing coins.

3. The third largest platform

The platform is supported by many experienced players in the Solana ecosystem and has spawned several popular projects that have gained attention. It is recommended to follow the social media updates of the founders and ecosystem supporters, as they often publicly announce calls.

4. Robot Wars

A certain platform allows users to quickly launch new tokens through simple social media operations. This mechanism has led to a large number of bots monitoring and rapidly buying new tokens, causing the meme battlefield to evolve from PVP to BVB. In this model, when the official directly recommends a certain meme, early interest groups have already set up ambushes, making it extremely risky for retail investors to enter.

5. meme market competitive landscape

Although a certain platform still holds an absolute leadership position in the meme market, its market share is being eroded by new platforms. From almost a monopoly to a position that is now seriously threatened. The ultimate winner of this meme war is yet to be determined, but for retail investors, the phase of competition among multiple platforms may be a golden period of opportunities for memes.

2. Key Points of the SEC Chairman's Speech on Asset Tokenization

1. Asset Issuance

Current Status and Challenges: Currently, only 4 cryptocurrency asset issuers have completed legal issuance through registration or Regulation A. Certain information required by existing forms may be unrelated to cryptocurrency asset investment decisions. The SEC has adjusted forms for specific assets, but the adjustments for cryptocurrency assets have not kept pace with the growing investor interest.

Regulatory Objective: To establish clear and reasonable guidelines for the allocation of crypto assets constrained by securities or investment contracts, addressing the uncertainty faced by issuers. Criticizing the past "shoot first and ask questions later" regulatory approach, it emphasizes providing legal certainty for the industry. For non-compliant projects with issued coins, as long as they can be corrected, the SEC still offers registration exemptions or safe harbor.

2. Custody

The difficulties of custodial management in the past: (1) Identity Restrictions: This time, the restrictions on the identity of custodians have been relaxed, gradually expanding from large asset companies or banks to securities firms, financial institutions, etc. ( Custody restrictions: Previously, when users deposited crypto assets, the custodian needed to correspond with equal liabilities and secured assets, occupying a large amount of capital. The relevant legislation was repealed this January.

Regulatory Objective: To provide more options for registered custodians of crypto assets, clarify the types of "qualified custodians", and consider reasonable exemptions for self-custody. Rules may be updated to allow advisors and funds to self-custody under certain circumstances.

) 3. Transaction

Current Situation and Innovation: Supporting registered users to trade a wider range of products, such as providing securities and non-securities trading through a "super app." It points out that federal securities laws do not prohibit registered broker-dealers with ATS from facilitating non-securities transactions.

Regulatory Objective: Modernize the ATS regulatory system to adapt to crypto assets, explore further guidance or rules, and enable the trading of crypto assets on national securities exchanges. Emphasize that innovation should not be forced to move overseas due to regulatory inadequacy.

Conclusion:

1. Strict regulation curbs fraud, making the market more standardized.
2. Tokenization becomes mainstream, balancing efficiency and Compliance.
3. Liquidity has significantly increased, and the market size has expanded.

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