meme coin heated competition, SEC speech guidelines compliance new era

This week, the crypto market saw a surge due to the easing of trade tensions between China and the U.S. and CPI data meeting expectations. Although there was a brief flash crash on Thursday evening, it was followed by a recovery, and the current price of Bitcoin remains above $104,000. The market remains mixed, with one trading platform initially rising sharply after joining the S&P 500 index, only to drop 7.2% later due to an investigation and user data theft. FTX is set to initiate a $5 billion compensation, but the Wisconsin Investment Board has sold its Bitcoin ETF holdings. Meanwhile, Russia has increased troops in Ukraine, and overall cautious sentiment has intensified.

The meme coin market has entered a heated stage, with fierce competition among three major platforms, revolving around token launches, liquidity, and community influence, resulting in 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 go hand in hand.

1. Meme Chaos Intensifies

As Believe joins the opposition camp, the competition in the meme market has become increasingly fierce among the three major platforms this week. Especially in the race for the Ticker of Glonk, the three platforms have engaged in a crazy showdown. Two of the founders even called each other out on social media, pushing this meme frenzy to its peak.

1. A certain platform has become the target of public criticism.

The platform does not need to issue coins due to ample cash flow, and regularly sells Solana, which suppresses the price of its own coin. According to statistics, the platform has sold a total of approximately 3.868 million SOL over the past year, at an average price of 183.3 dollars.

In addition, the platform dominates the development of the Solana ecosystem, lacking competitive dynamics, which is detrimental to ecological development. The platform accounts for 71% of the daily token issuance on Solana and has launched DEX to directly compete with other platforms, further consolidating its market share. This dominance may stifle innovation and harm the long-term development of the ecosystem.

Later, under competitive pressure, the platform announced the launch of a creator revenue sharing program, sharing 50% of the revenue with token creators.

2. Believe's Web2 gameplay

The founder of Believe is a young Australian entrepreneur with extensive Web2 startup experience. The platform has attracted market attention by introducing talent from Web2 into Web3 and launching multiple meme projects with a market value exceeding ten million.

For example, the Yapper project was launched by Harvard graduates, and the founders have experience with several blockbuster products in Web2. This meme coin quickly reached a market value in the tens of millions. It is believed that this model may continue in the short term and attract more Web2 teams to join.

Recently, the founder stated that they will no longer recommend new tokens, but will focus on existing projects, with opportunities possibly arising from re-entering existing projects.

3. Third-party platform

The platform is supported by many OGs in the Solana ecosystem and has given birth to several popular projects that have gained traction. If you want to participate, you can follow the social media updates of the founders and ecosystem supporters, as they often publicly announce opportunities.

4. Robot Wars

A certain platform allows users to launch new tokens through simple social media operations, a mechanism that has led to a large number of bots monitoring and quickly buying in, transforming the meme battlefield from the initial person-to-person into a bot-to-bot scenario. In this model, when the official directly recommends a certain meme, early interest groups have already ambushed in advance, and retail investors face higher risks when entering.

5. The competitive landscape of the meme market

Although a certain platform still holds a leading position in the Meme market, its market share is being eroded by new platforms. From almost controlling the entire market to its current position being seriously threatened. The ultimate winner of this meme war is yet to be known, but for retail investors, the competition among multiple platforms may be a golden period for the frequent emergence of popular meme projects.

2. Keynote Speech on Asset Tokenization by SEC Chairman

1. Asset Issuance

Current Situation and Challenges: Currently, only a few crypto asset issuers have completed legal issuance. The existing requirements may not be related to crypto asset investment decisions. The SEC plans to establish clear guidelines for the allocation of crypto assets constrained by securities or investment contracts to address the uncertainty of issuers. For non-compliant projects that have issued coins, the SEC still offers registration exemptions or safe harbor as long as they can be corrected.

2. Custody

The SEC plans to relax the identity restrictions for custodians, gradually expanding from large asset companies or banks to include brokerages, financial institutions, and others. The previous restrictions on the capital occupation of custodians have been lifted. The SEC aims to provide registrants with greater custodial choices and is considering reasonable exemptions for self-custody to adapt to common market practices.

3. Transaction

The SEC supports allowing registered platforms to trade a wider range of products, such as providing securities and non-securities trading through "super applications." The SEC plans to modernize the ATS regulatory framework to better accommodate crypto assets and explore further guidance to facilitate the listing and trading of crypto assets on national securities exchanges.

Conclusion

1. Strong regulation will curb fraud and make the market more standardized.

2. Asset tokenization has become mainstream, and the United States occupies a leading position in global asset issuance through regulatory frameworks.

3. Tokenization bridges the traditional stock market and the crypto market, significantly enhancing overall liquidity and driving rapid market expansion.