In the crypto world, few names resonate as powerfully as Michael Saylor’s. The Microstrategy co-founder and Executive Chairman has long been hailed as a leading voice in Bitcoin advocacy, with his company amassing one of the largest Bitcoin holdings in corporate history. However, a recent interview has shaken the faith of many in the community as Saylor took aim at one of the core tenets of Bitcoin maximalism: self-custody.
During the interview, Michael Saylor dismissed concerns about potential Bitcoin seizures by governments, pinning the blame on what he called “paranoid crypto-anarchists.” His comments ignited a firestorm within the community, with prominent figures blasting him for his views and accusing him of betraying the very people who once elevated him to crypto stardom.
Saylor’s Startling Remarks: A Call for Custodial Trust
At the heart of the controversy is Michael Saylor’s stance on the risks of self-custody, which has been a pillar of Bitcoin philosophy since its inception. When asked about the possibility of governments seizing Bitcoin—similar to the U.S. government’s confiscation of gold in 1933—Saylor dismissed such concerns, labeling those who feared this as “paranoid crypto-anarchists.”
I think that when Bitcoin is held by a bunch of crypto-anarchists who aren’t regulated entities, who don’t acknowledge government, taxes, or reporting requirements, it increases the risk of seizure
Saylor stated.
Michael Saylor further argued that centralized custodians like Blackrock, Fidelity, and JPMorgan, who adhere to regulatory frameworks, would offer greater security against such actions. According to Saylor, these large, regulated public entities would lower the risk of seizure due to their deep integration with the financial and political establishment, where lawmakers and politicians also have vested interests.
Michael Saylor’s remarks also touched on a long-standing fear within the Bitcoin community: that governments might one day attempt to seize Bitcoin holdings, similar to Executive Order 6102 under President Franklin D. Roosevelt, which led to the confiscation of privately held gold. Saylor called this fear unfounded, dismissing it as nothing more than a conspiracy propagated by a fringe group.
People say that, but it’s mostly paranoid crypto-anarchists. It’s a myth and a trope that goes on over and over again
Saylor remarked.
A Community Divided: The Backlash is Swift and Strong
Saylor’s comments did not sit well with many in the Bitcoin community, especially those who have championed self-custody as a safeguard against government overreach. What was once Saylor’s ardent fanbase quickly turned against him, accusing him of abandoning the principles that originally made Bitcoin a revolutionary force.
Max Keiser: “The Stripper Really Likes Him”
Max Keiser, one of Bitcoin’s most vocal permabulls, did not hold back. He took to social media to slam Michael Saylor’s remarks, suggesting that the Microstrategy co-founder had been lulled into a false sense of security by the establishment.
.@Saylor’s the type of guy who thinks the stripper really likes him (or, he has Stockholm Syndrome)
Dude!!! Wake up!
They tried to put you in prison in 2020, remember?
“Saylor is the type of guy who thinks the stripper really likes him (or, he has Stockholm Syndrome),” Keiser tweeted, comparing Saylor’s trust in regulated custodians to a misguided fantasy.
Vlad Costea: Saylor is Betraying the Community
Podcaster Vlad Costea, another significant voice in the crypto world, was similarly critical. He pointed out that Michael Saylor, who rose to prominence largely thanks to the decentralized, self-sovereign principles of Bitcoin, now seems to have abandoned those ideals in favor of mainstream acceptance.
saylor's biggest trick was to make everyone who boosted him to bitcoin god status irrelevant
you can scream at him now all you want, he's too big
it doesn't matter what he said 3-4 years ago, he was only pulling strings to get bigger than any other voice in bitcoin
now that…
— Vlad hosts the best podcast in Bitcoin (@TheVladCostea) October 21, 2024
“It doesn’t matter what he said 3-4 years ago, he was only pulling strings to get bigger than any other voice in Bitcoin,” Costea remarked, suggesting that Saylor’s newfound allegiance with traditional financial institutions was a calculated move to gain influence.
Ray Youssef: We Were Warned
Ray Youssef, CEO and Chief Advocate of Noones, a P2P marketplace, linked Michael Saylor’s remarks to the broader state of the Bitcoin market. He suggested that while the community was busy ridiculing figures like Roger Ver (known for his support of Bitcoin Cash), they had missed the larger picture.
We were all warned but we're too smug and busy pooping on Roger ver to notice that bitcoin got p0wn3ed https://t.co/OZfoSnv4lm
The Debate Over Bitcoin Custody is a Battle for Bitcoin’s Soul
At the core of this controversy is a deep philosophical divide within the Bitcoin community. For many, the self-sovereignty that comes with holding one’s own keys has always been the cornerstone of Bitcoin’s promise of financial freedom. The mantra “Not your keys, not your coins” underscores this principle, emphasizing the importance of self-custody in a world where governments and financial institutions have historically overstepped their bounds.
However, Michael Saylor’s remarks represent a growing contingent within the Bitcoin space that sees institutional adoption as the key to Bitcoin’s long-term success. This camp argues that large, regulated custodians like Blackrock and Fidelity can offer the kind of security and stability needed to bring Bitcoin into the mainstream, reducing the risk of outright bans or seizures.
Saylor’s belief that custodianship by traditional financial institutions lowers the risk of government action is a position that may appeal to investors seeking a more predictable regulatory environment. However, for Bitcoin purists, this position is tantamount to surrendering the very freedoms that Bitcoin was designed to protect.
Saylor’s Legacy at Risk?
Michael Saylor’s status as a Bitcoin hero has undoubtedly taken a hit. Once revered as one of the biggest advocates for Bitcoin, Saylor now finds himself at odds with a significant portion of the community that helped elevate him to his current position. The man who famously said, “Bitcoin is the apex property of the human race,” now faces criticism for seemingly endorsing a more centralized vision for Bitcoin’s future.
Whether this controversy will tarnish Michael Saylor’s long-term legacy in the Bitcoin space remains to be seen. What is clear, however, is that the battle over Bitcoin’s soul—between self-custody and institutional control—is far from over.
Will Bitcoin Stay True to Its Roots?
As Bitcoin continues to evolve, the debate over self-custody versus institutional control is likely to intensify. For many in the crypto community, Saylor’s remarks are a warning that Bitcoin’s original ideals could be compromised in the pursuit of mainstream adoption. The coming years will likely determine whether Bitcoin remains a tool for individual financial sovereignty or becomes just another asset under the control of large financial institutions.
For now, the crypto community watches closely, wondering whether Saylor, the once-revered hero, has strayed too far from the path—or if his vision represents Bitcoin’s inevitable future.
As Gary Gensler‘s tenure as Chair of the U.S. Securities and Exchange Commission (SEC) draws to a close, a palpable sense of anticipation surrounds the crypto industry. Gensler, who has been at the forefront of shaping America’s crypto policy, is nearing the end of his controversial reign. His rigid stance on crypto regulation has been a defining feature of his leadership, but as his term approaches its twilight, the industry is left wondering what his departure could mean for the future of digital assets.
A Polarizing Legacy
Gary Gensler’s time as SEC Chair has been nothing short of contentious. A former banker with a deep understanding of financial systems and digital assets, Gensler approached the crypto sector with a hardline regulatory agenda. Gary Gensler made it clear from the start that the SEC would not need new laws to regulate crypto, but would instead enforce existing securities laws. This decision marked the beginning of a long and bitter battle between the SEC and the crypto industry.
Under Gary Gensler’s leadership, the SEC launched an aggressive crackdown on what Gensler deemed non-compliant crypto businesses, often relying on enforcement rather than the creation of clear regulatory guidelines. His refusal to tailor new rules specifically for digital assets left many in the industry feeling as though they were operating in a regulatory gray zone. For many crypto leaders, Gary Gensler became a symbol of governmental overreach, stifling innovation and progress in the sector.
With Gary Gensler’s term set to expire in January 2026, the question of whether he will step down sooner if Donald Trump regains the presidency in 2024 looms large. While tradition suggests SEC chairs step down when a new president from the opposing party takes office, Gensler has not committed to this course of action. When asked about his plans should Trump win, Gensler remained coy, stating, “Elections have consequences,” leaving his intentions unclear.
If Gensler does decide to stay on, he could theoretically continue as a commissioner even if he is no longer the Chair, maintaining a Democratic majority at the agency until new appointments are confirmed by the Senate. But whether he stays or goes, his influence over crypto policy is likely to diminish in the coming year.
A Divisive Approach to Regulation
One of Gary Gensler’s most criticized decisions was his reliance on the Howey Test, a legal standard from the 1940s, to define whether cryptocurrencies qualify as securities. This approach has sparked a wave of lawsuits and legal battles as crypto firms push back against the SEC’s aggressive enforcement tactics. Gensler’s insistence that most crypto assets are securities, subject to SEC oversight, has resulted in high-profile lawsuits against companies like Ripple and Coinbase.
Critics argue that Gensler’s regulation-by-enforcement approach has left the industry in limbo. SEC Commissioner Hester Peirce, often referred to as “Crypto Mom” for her pro-crypto stance, has been a vocal opponent of Gensler’s tactics, labeling them inefficient and detrimental to innovation. Peirce, along with many in the industry, has long called for a more defined regulatory framework tailored to the unique nature of digital assets.
Congress Weighs In
Lawmakers are also divided on Gary Gensler’s handling of crypto. Earlier this year, a majority in the House of Representatives passed a bill that sought to create new rules specifically for digital assets, including clearer definitions of crypto securities and regulations for the industry. However, the bill has stalled in the Senate, leaving the future of crypto regulation uncertain. Meanwhile, a bipartisan majority in the Senate rebuked Gensler’s crypto accounting policies, demonstrating a growing frustration with his approach.
Former SEC Acting Chair Michael Piwowar expressed optimism that Congress may finally establish a clear legal framework for crypto regulation in 2025. “Five years from now, we’ll look back and ask why this wasn’t done sooner,” he noted, emphasizing the need for a more defined regulatory structure that limits the SEC’s discretionary power.
A New Era on the Horizon?
For the crypto industry, Gensler’s departure represents the possibility of a fresh start. Sheila Warren, head of the Crypto Council for Innovation, argues that a change in leadership is essential to foster innovation in the U.S. “Chair Gensler’s tenure at the SEC has been marked by missed opportunities,” she said, citing his refusal to provide regulatory clarity as a significant barrier to the industry’s growth.
If Trump wins the upcoming election, Gary Gensler’s departure could come swiftly. During a Bitcoin conference earlier this year, Trump made it clear that he would fire Gensler if given the chance, to the applause of crypto enthusiasts. A Trump victory could usher in a new SEC Chair more sympathetic to the crypto industry, potentially leading to a rollback of Gensler’s enforcement-first approach.
However, even if Vice President Kamala Harris wins, a shift in the SEC’s stance on crypto may still occur. Harris’ campaign has indicated that she would seek to reset the agency’s relationship with the digital assets sector, potentially signaling a more cooperative approach to regulation.
The Future of Crypto Regulation
Regardless of who takes over the White House, Gary Gensler’s reign over crypto is nearing its end. His legacy will be one of stringent enforcement and resistance to new rules, leaving behind a crypto industry that has been battered but remains hopeful for more clarity and fairness in the future.
As new leadership steps in, the SEC will likely continue to play a significant role in the regulation of digital assets, but the tone and strategy could shift dramatically. For now, the crypto world watches closely, knowing that Gensler’s exit could mark the beginning of a new regulatory era—one that could either foster innovation or introduce even more challenges.
In the final chapter of Gary Gensler’s SEC leadership, uncertainty reigns supreme. Yet, one thing is clear: the next era of crypto regulation in the U.S. will be shaped by those who succeed him, and it remains to be seen whether that era will be more favorable to the innovators and investors in the rapidly evolving digital asset space.
Miles Deutscher, a well-known crypto analyst with over 550,000 followers on X (formerly Twitter), has laid out his detailed strategy for making millions in the ongoing crypto bull run. In his latest video, “My Plan to Make Millions in Crypto by March 2025,” Deutscher shares insights on Bitcoin’s momentum, key altcoin opportunities, and how to strategically navigate the volatile market. Here’s a breakdown of his winning strategy.
The Start of the Bitcoin Bull Run
Deutscher highlights the bullish trends in Bitcoin, particularly the extended consolidation phase observed over the past eight months. “We’ve been consolidating above the 2021 high for a while now, and Bitcoin looks ready for another surge,” he says. According to Deutscher, Bitcoin could potentially reach the $100,000 mark, driven by significant inflows into Bitcoin ETFs.
In the past week alone, over $2 billion flowed into Bitcoin ETFs, with an additional $273 million to close out the week. This influx from traditional finance, he notes, indicates a strong appetite for Bitcoin among institutional investors.
Deutscher further speculates on how macroeconomic factors, including U.S. politics, could impact Bitcoin’s trajectory. He points out the correlation between Bitcoin’s performance and Donald Trump’s election odds, suggesting that a Trump win could push Bitcoin even higher.
How to ‘Make Millions’ with Altcoins
While Bitcoin may be the foundation, Deutscher’s strategy relies heavily on altcoins. He recommends taking advantage of market dips to accumulate altcoins that are poised for growth. “Alts are uptrending, and we’re starting to break above key levels,” Deutscher explains, underscoring the importance of holding altcoins through periods of underperformance to capture significant upside later in the cycle.
Timing the market, Deutscher cautions, is tricky. Instead of attempting to predict when Bitcoin dominance will rotate into altcoins, he advises focusing on “the end game” – positioning yourself early in coins that have strong potential to outperform Bitcoin in the long run.
Deutscher identifies several emerging narratives and altcoins that he believes will drive the next wave of growth. One of his top picks is AI-driven meme coins, such as GOAT, where AI agents create and promote tokens. “GOAT could either go to zero or skyrocket to a billion-dollar market cap,” Deutscher notes, acknowledging the high-risk, high-reward nature of this investment.
Additionally, Deutscher suggests looking into projects highlighted by well-known investor Murad Mahmudov, such as SPX6900 and MOG. He recommends selecting two or three of these tokens and investing with high conviction, rather than spreading your capital too thin across numerous projects.
Beyond meme coins, Deutscher is heavily invested in AI-related projects. He has placed bets on tokens like Bittensor and Near Protocol, seeing significant growth potential in the AI sector. He also highlights real-world asset (RWA) tokenization as another key trend, with investments in projects like Mantra and Clearpool.
The Importance of Accumulation and Profit-Taking
A central theme of Deutscher’s strategy is accumulating during market corrections. He points out that the market is currently rewarding those who buy during dips, with higher lows forming in several key assets. “We’re in a new paradigm where buying the dips pays off,” he says.
Deutscher also warns against arbitrary price targets and portfolio milestones. Rather than waiting for Bitcoin to hit $100,000 or for a portfolio to reach a certain value, he suggests implementing a gradual profit-taking strategy. “For each coin, set a plan to sell off percentages at certain multiples,” he advises. This allows investors to lock in gains progressively without trying to time market peaks.
Diversification vs. Focus: Quality Over Quantity
When it comes to portfolio construction, Deutscher emphasizes selective investing. He references Warren Buffett’s famous quote: “Diversification is protection against ignorance.” According to Deutscher, over-diversifying by holding too many coins dilutes your chances of making substantial gains. Instead, he recommends focusing on two or three projects from each narrative and investing with higher conviction.
This means being mindful not to over-invest in similar projects. For example, instead of holding multiple AI coins or meme coins, choose a couple that have the strongest potential and stick with them.
Adapt, Accumulate, and Take Profits
As the crypto market continues to evolve, Deutscher stresses the importance of staying adaptable. He advises investors to regularly reassess their positions and cut loose underperforming assets in favor of high-conviction plays. By accumulating during market dips, focusing on strong narratives, and taking profits incrementally, he believes investors can maximize their chances of making millions by March 2025.
ApeCoin (APE), the cryptocurrency closely associated with the Bored Ape Yacht Club (BAYC), has witnessed a staggering 100% surge over the weekend, reaching a price of $1.5 for the first time since April. This remarkable rally can be attributed to the debut of the much-anticipated ApeChain, launched by Yuga Labs, the company behind BAYC, on Sunday.
ApeChain Launch: A Game-Changer for APE Holders
The introduction of ApeChain marks a significant milestone for the ApeCoin ecosystem, as it is designed as a Layer 3 network built on Arbitrum One. This new blockchain offers seamless compatibility with APE, enabling users to mint non-fungible tokens (NFTs), engage in trading, and access decentralized applications (dApps) while enhancing the overall user experience.
The ApeCoin community had voted in January to develop this blockchain, and its launch has now opened up new avenues for APE holders. One of the standout features of ApeChain is its native staking yield, allowing users to earn passive income simply by holding their APE tokens. As the staking bridges went live alongside the ApeChain, users can now transfer their tokens and automatically earn yield on APE, ETH, and stablecoins.
The Allure of Automatic Yield
The decision to implement automatic yield mode has generated significant investor interest. As noted by Markus Thielen, head of 10x Research, this feature enables users to passively earn returns by staking their tokens. The system automatically reinvests rewards, maximizing yield over time—a development that could encourage more active engagement within the ApeCoin ecosystem.
Thielen stated in a report to clients, “ApeCoin has introduced an automatic yield mode, allowing users to passively earn returns by staking their APE tokens. This new feature is part of the broader ApeCoin ecosystem, which aims to enhance token utility by encouraging users to engage more actively with the token through games, staking pools, and other activities.”
Another crucial factor contributing to the APE price rally is the integration of LayerZero, an interoperability protocol, into the ApeChain mainnet. This launch enables applications to seamlessly transfer data across different blockchains, significantly enhancing the utility of the APE token.
The incorporation of LayerZero’s omnichain fungible token standard allows for smooth cross-chain transfers, ensuring scalable and efficient transactions across multiple platforms. This interoperability opens up new possibilities for APE and solidifies its position in the broader cryptocurrency ecosystem.
Investor Sentiment and Market Implications
The combination of ApeChain’s launch, the introduction of native staking yield, and the integration of LayerZero has created a buzz around ApeCoin, resulting in a wave of investor optimism. Many analysts believe that the new features will not only attract existing APE holders but also draw in new users seeking yield-generating opportunities.
As the market for memecoins and utility tokens continues to expand, ApeCoin’s robust ecosystem and innovative features position it favorably among the myriad of options available to investors. The ability to earn passive income through staking while enjoying the benefits of a vibrant community and a unique NFT platform could very well propel APE to new heights in the coming months.
A New Chapter for ApeCoin
With the launch of ApeChain, ApeCoin has not only doubled in value but has also established itself as a formidable player in the cryptocurrency landscape. The combination of yield-generating features, interoperability, and a dedicated community bodes well for the token’s future.
As the ApeCoin ecosystem continues to evolve, stakeholders will be watching closely to see how these developments influence market dynamics and investor behavior. For now, the remarkable 100% surge stands as a testament to the potential of innovative blockchain solutions and the power of community-driven projects in the ever-evolving world of cryptocurrency.
Meme coins have become a major phenomenon in the cryptocurrency market. Their rise has been driven by strong communities, humorous branding, and the sheer unpredictability that captures the excitement of crypto enthusiasts. These coins, although based on memes or jokes, have managed to build considerable momentum in terms of market value and user engagement. Let’s explore the top 10 meme coins making waves today, complete with their unique identities and cashtags for your tracking convenience.
$VENKO: The Viking Meme Coin
$VENKOMeet VENKO, a cosmic adventurer zipping through the galaxy, making friends, collecting puppies, and diving into cryptocurrency. Known for his whimsical encounters—like mistaking supernovas for fireworks—VENKO has won the hearts of many. But there’s more to this alien than meets the eye.
VENKO: A Digital Passport to a Unique Community
VENKO isn’t just about fun; he’s a symbol of connection. Acting as a digital passport, VENKO unites Alien, UAP (Unidentified Aerial Phenomena), and crypto enthusiasts under one banner of curiosity and camaraderie. Through his vision, VENKO brings together a community eager to explore the mysteries of the cosmos.
The Mission: Building a Cosmic Community
Realizing the need for a secure space where the alien-curious can connect without the restrictions of mainstream platforms, VENKO embarked on a mission. He created Alienium, a decentralized social media app powered by the $VENKO token. This app provides a sanctuary where users can discuss aliens and UAPs freely, without censorship. In addition, VENKO is launching UAPsnap, an app for capturing UAP images and reporting alien abductions—connecting users with fellow abductees.
Alienium: A Haven for the Inquisitive
Alienium, powered by $VENKO, is the heart of this cosmic community. It’s more than just a chat platform—it’s a hub for enthusiasts to gather, share discoveries, and even organize UAP projects. Whether you’re into messaging, voice and video chats, or looking for a community to fund your extraterrestrial documentary, Alienium has it all. There’s even a designated dating section for those who seek love among the stars!
$VENKO Token: The Lifeblood of the Alienium Ecosystem
The $VENKO token is central to the Alienium experience, offering various utilities that enhance user interaction and engagement:
Content Rewards: Users who post high-quality content, research, or media about aliens and UAPs are rewarded with $VENKO tokens, encouraging vibrant and informative discussions.
Premium Content: Unlock access to exclusive content, advanced research tools, and expert insights using $VENKO, encouraging users to dig deeper into extraterrestrial mysteries.
Fundraising Platform: Raise $VENKO to fund exciting projects like UAP documentaries or archeological digs, fostering a supportive environment for alien exploration.
Governance: Holders of $VENKO have voting rights on platform decisions, giving the community a voice in shaping Alienium’s future.
Micro-Tipping: Show appreciation for your favorite creators and researchers by tipping them $VENKO, cultivating a supportive and engaged community.
VENKO’s Edge: Aliens are More Interesting than Frogs or Dogs!
What sets VENKO apart from other meme coins is his focus on the extraterrestrial. While most meme coins revolve around dogs, cats, or frogs, VENKO taps into the allure of the unknown—aliens and UAPs! VENKO’s groundbreaking decentralized social media app and UAP reporting platform give the meme coin real-world utility, allowing it to grow beyond just hype.
A Vision for the Future
VENKO is more than just a meme coin—he’s building a culture. By intertwining cryptocurrency with the mysteries of the universe, VENKO is pioneering a community where curious minds can unite, explore, and share their passion for the unknown. The decentralized platforms of Alienium and UAPsnap provide a foundation for this future, ensuring a space where freedom of thought and expression thrives.
In a world full of meme coins, VENKO’s cosmic vision stands out, creating a community driven by curiosity, discovery, and the belief that “the truth is out there.”
2. $NEIRO
Neiro, a meme coin launched on the Solana chain, has taken the cryptocurrency world by storm, amassing over $1 billion in trading volume within 24 hours. Inspired by a newly adopted dog of Kabosu’s owner (the famous “Doge”), Neiro’s rapid rise is making waves across the crypto community.
The Story Behind Neiro
Named after a 10-year-old shelter dog adopted by Atsuko Sato, the owner of Kabosu (the original “Doge” meme), Neiro symbolizes a fresh start. Atsuko introduced Neiro on Instagram, sharing how the dog had overcome a difficult past and was now welcomed into a loving home. Capitalizing on this emotional connection, a developer quickly launched Neiro as a meme coin, tapping into the Doge legacy and driving immense popularity.
Market Impact
Neiro’s explosive entry has shifted attention and investment from other meme coins like MIGGLES, BILLY, RETARDIO, and POPCAT, all of which have experienced significant declines as capital flows into Neiro. Its success is not only a meme coin sensation but a notable force in the broader crypto market.
3. $BRETT: The Bold and Brash Meme Coin
The cryptocurrency world is abuzz over BRETT, a meme coin that’s rapidly gaining traction with an impressive price surge. Analysts are already predicting big things for this coin, pointing to how meme coins are becoming more than just viral sensations—they’re starting to reshape the fintech landscape. Here’s why BRETT’s rise isn’t just another crypto fluke, but a signal of broader changes in the world of digital finance.
The Rise of BRETT and the Meme Coin Phenomenon
Meme coins have emerged as a dynamic force in the crypto space, thriving on community enthusiasm and social media momentum. BRETT is the latest meme coin to explode onto the scene, recording a nearly 20% increase in value. It’s attracting attention from both casual traders and serious investors. But why is this surge noteworthy? BRETT’s rise reflects deeper trends that show how meme coins are carving out a space within fintech, potentially reshaping crypto banking in the process.
Why BRETT is Surging
BRETT’s success can be attributed to a few key factors. First, the strong community backing the coin is driving its momentum. Crypto analysts have been quick to take notice, with many predicting continued growth. From a technical standpoint, BRETT has broken through a descending trendline, a common signal of bullish movement. Additionally, the ADX (Average Directional Index) reading—an indicator of trend strength—climbed above 50 on the four-hour chart, signaling a solid upward trend if external factors remain favorable.
Beyond the technicals, accessibility plays a crucial role. BRETT’s listings on major exchanges have boosted liquidity, making it easier for users to buy in, a crucial lesson for fintech startups looking to break into the crypto market.
The Risk and Reward of Meme Coins
While meme coins like BRETT offer unique advantages—such as fostering community engagement and driving rapid price increases—they also come with significant risks. Meme coins are notoriously volatile, with their value often swinging wildly based on social media trends or even a single tweet from influencers like Elon Musk.
Many meme coins lack intrinsic utility, relying almost entirely on community sentiment, which can change in an instant. Moreover, the meme coin space is plagued with scams like pump-and-dump schemes or rug pulls, where creators disappear with investors’ money. Adding to the uncertainty, regulatory bodies are still working to figure out how to handle these assets, leaving the market open to both innovation and chaos.
4. $WIF
Dogwifhat (WIF) is a meme coin that draws inspiration from a viral internet meme featuring a Shiba Inu dog wearing a pink-knitted hat, much like its predecessor Dogecoin (DOGE). Unlike Dogecoin, which has gradually gained some functional uses, Dogwifhat’s value is purely speculative, driven by its meme status and strong community backing. Operating on the Solana (SOL) blockchain, this token was launched in December 2023. Despite its humorous origins, Dogwifhat quickly gained traction and reached an all-time high price of $2.25 in March 2024. Its market capitalization surged to nearly $2.2 billion, aided by a listing on major exchanges like Binance. The project’s anonymous founders embraced the power of internet culture to build a token that thrives on speculative trading and community enthusiasm.
The emergence of Dogwifhat can be linked to the broader internet meme culture, particularly focusing on the crypto community’s love for fun and playful projects. Memecoins like Dogwifhat capitalize on this, drawing heavily on the success of Dogecoin, the pioneer meme coin. Dogecoin itself began as a joke but managed to grow a large following, eventually seeing real-world adoption. Dogwifhat seeks to follow in these footsteps by combining internet humor with cryptocurrency, creating a project that resonates with the playful, innovative spirit of the crypto world. By tapping into the viral nature of the meme, Dogwifhat captured the imagination of investors, many of whom are eager to replicate the success stories of earlier meme coins.
Dogwifhat operates on a decentralized governance model, which gives holders control over the coin’s future direction. Unlike traditional cryptocurrencies controlled by a central authority, WIF token holders can vote on proposals affecting the coin’s development. This decentralization aligns the project with the values of community-driven growth. Dogwifhat has a finite supply of 998.9 million tokens, which appeals to investors who view limited-supply assets as potentially more valuable due to scarcity. However, despite its surging popularity, Dogwifhat has no real-world use cases. Its value is entirely speculative, with no plans for token burns, staking rewards, or utility-based adoption. Investors are drawn to it purely for potential price appreciation, driven by community hype and market sentiment.
5. $SUNDOG
$SUNDOG is a meme coin launched on the TRON blockchain that has swiftly gained popularity. Since its introduction in August, it has attracted the attention of the TRON community and beyond, thanks to its unique position in the growing meme coin space. With a current market capitalization of $260 million, $SUNDOG has managed to position itself as a high-potential meme coin, particularly for early investors who are eager to get involved in a project before it reaches mainstream exchanges like Binance or Coinbase. This coin has all 1 billion of its tokens already in circulation, allowing for immediate market activity without concerns about locked tokens or delayed distribution schedules.
One of the major appeals of $SUNDOG is the opportunity for early entry. The project was launched on TRON’s SUNPUMP launchpad, and the entire token supply was made available at the start. This eliminates concerns about future token releases affecting the price. Furthermore, $SUNDOG has yet to be listed on major exchanges, which presents a potentially lucrative opportunity for investors to acquire tokens at lower prices before greater exposure increases its value. The meme coin’s value is driven by its community and the speculative nature that defines many meme coins, with no intrinsic utility outside its meme status and the strong backing of the TRON blockchain community.
6. $MAGA
MAGA (Make America Great Again) is a politically-charged meme coin tied to the persona of former U.S. President Donald Trump. Launched as a nod to his political campaign slogan, MAGA coin capitalizes on Trump’s media presence and public persona. Since its launch, the coin has seen extraordinary growth, rising by over 66,000% in value from January to March 2024. MAGA’s price peaked at $11.15, fueled by a strong media cycle surrounding Trump and ongoing political events. Its market capitalization crossed $461 million in early 2024, making it one of the most successful politically-themed meme coins.
What sets MAGA apart from other meme coins is its connection to a high-profile public figure, Donald Trump. Trump’s media prominence, particularly during election cycles, plays a pivotal role in the coin’s market performance. Investors speculate on Trump’s ability to dominate headlines, leveraging the coin’s association with his brand for potential gains. Notably, Mechanism Capital, a prominent crypto hedge fund, invested in MAGA and other Trump-related meme coins and NFTs, banking on Trump’s continued media attention rather than the outcome of the elections. This strategy illustrates the intersection of meme culture, politics, and speculative crypto investments, where media exposure drives market value.
7. $Moodeng
Moo Deng is a niche meme coin inspired by a viral internet sensation, a two-month-old pygmy hippo named Moo Deng. The coin quickly garnered attention in the crypto space due to the hippo’s playful antics and adorable expressions, which became viral on platforms like TikTok and Instagram. The coin saw an unprecedented rise in value within just 17 days, turning a small investment of Rs 1 lakh (approximately $1,300) into a multi-million-dollar fortune. As of late September 2024, the investor’s holdings were valued at over $12 million, thanks to Moo Deng’s massive price surge.
Despite its remarkable price growth, seasoned traders have expressed skepticism regarding the authenticity of Moo Deng’s performance. Some have speculated that the coin’s limited liquidity pool (valued at just $1.8 million) makes it difficult for large amounts of capital to be withdrawn without impacting the price. This has led to suspicions of insider trading or market manipulation. Regardless of these concerns, Moo Deng’s rapid rise underscores the unpredictable and highly speculative nature of meme coins, where internet virality can drive extraordinary short-term gains.
8. $GIGA
Gigachad (GIGA) is a meme coin rooted in the viral meme of “Gigachad,” which represents the pinnacle of masculine physical perfection. The meme, featuring Russian bodybuilder Ernest Khalimov, became wildly popular online, symbolizing ideal masculinity. GIGA, built on the Solana blockchain, seeks to capitalize on the cultural phenomenon surrounding the meme by creating a community-driven cryptocurrency focused on self-improvement and the values associated with Gigachad — strength, perseverance, and self-discipline.
More than just a meme coin, GIGA aims to inspire its community to engage in personal growth, offering fitness challenges, educational content, and motivational programs. The coin is governed by its community through decentralized voting, ensuring that the project evolves according to the collective vision of its holders. GIGA’s integration into the Solana ecosystem enables fast, low-fee transactions, enhancing its appeal within the broader crypto community. The project’s unique blend of meme culture and self-improvement sets it apart from other meme coins, creating a strong, value-driven community behind the cryptocurrency.
9. $POPCAT
Popcat ($POPCAT) is a meme coin based on the viral Popcat meme, which features a cat named Oatmeal making a distinctive “popping” sound with its mouth. This meme, popularized in late 2020, gained widespread attention for its simplicity and interactive appeal. Developers capitalized on its viral success by launching $POPCAT on the Solana blockchain, and the token experienced rapid growth, with its market capitalization soaring from $200,000 to $600 million in a matter of months.
The total supply of $POPCAT tokens stands at just under 980 million, with 93.1% of the tokens burned to reduce central control and enhance investor confidence. The remaining 6.9% of tokens are held in a multi-signature wallet for strategic uses like exchange listings and liquidity enhancements. The coin’s success is a testament to the power of viral internet culture in driving speculative interest and market demand, particularly in the meme coin sector. By leveraging the charm and relatability of the Popcat meme, the creators have crafted a unique community-driven project that resonates with a broad audience, from casual meme enthusiasts to dedicated crypto investors.
10. $MOTHER
Mother Iggy emerged as a distinctive addition to the Solana ecosystem, leveraging its high-speed transactions and low fees. Drawing inspiration from the persona and public image of Iggy Azalea, the project merges the excitement of meme coins with the allure of celebrity branding. This combination creates a unique digital asset that captivates both cryptocurrency enthusiasts and Iggy Azalea’s fanbase.
Recently, the Mother Iggy (MOTHER) token experienced a significant surge following a utility announcement. Azalea revealed that holders of the Mother Iggy memecoin would soon be able to purchase mobile phones and monthly cellphone subscription plans through her relaunch of a telecommunications company. In a post on June 9, Azalea announced, “Tomorrow, I’m finally relaunching the telecommunication company I co-founded, and you will be able to purchase phones or month-to-month cell plans using MOTHER or SOL.”
This announcement resulted in a 30% price increase for the MOTHER token within 24 hours, reaching a trading price of $0.1958 according to CoinMarketCap. Additionally, Azalea mentioned that the marketing campaign for the mobile company’s relaunch would commence that week, potentially generating further social media buzz and upward momentum for the meme coin.
Up Next– Special Mentions!
$BOME (Book Of Meme): The Meme Bible
$BOME, Book of Meme (BOME) is an experimental meme coin designed to immortalize meme culture on the blockchain. Launched on Solana in March 2024, BOME rapidly gained traction, soaring by 44,000% during its pre-sale and reaching a market cap of $618 million within a week. The project uses Arweave and IPFS to preserve memes on decentralized storage, creating a permanent record of internet meme culture. By blending decentralized technology with the playful nature of meme culture, Book of Meme aims to create an evolving collection of digital memes, securing their place in the digital world forever.
The project seeks to capitalize on the ephemeral nature of memes by providing a platform where users can create, share, and preserve them. Through blockchain technology, Book of Meme ensures that these cultural artifacts remain accessible for future generations. The idea is to merge decentralized social media and blockchain’s immutability, offering a new way for users to interact with and value meme culture. BOME’s rapid rise highlights the continued appeal of meme coins and their ability to generate significant interest, even when they lack functional use cases. At its core, BOME serves as a digital preservation tool for meme enthusiasts, connecting the worlds of cryptocurrency and internet humor.
12. $APE: ApeCoin
ApeCoin has emerged as one of the top memecoins of 2024, captivating the crypto community with its unique blend of pop culture and blockchain innovation. As the native token of the Bored Ape Yacht Club (BAYC), ApeCoin is intricately linked to one of the most iconic NFT collections, drawing a dedicated fanbase eager to engage in its ecosystem. Its recent price surge, catalyzed by the launch of the ApeChain, has further solidified its position in the market.
The introduction of automatic staking yield on APE tokens has attracted investors looking for passive income opportunities, enhancing the token’s utility. Additionally, ApeCoin’s integration with LayerZero allows for seamless cross-chain transfers, expanding its reach and usability. As the memecoin market thrives, ApeCoin stands out not only for its community-driven governance but also for its potential to redefine engagement in the cryptocurrency space, making it a standout player in 2024.
Final Thoughts
Meme coins may have started as jokes, but many of them have grown into thriving communities and viable investment opportunities. Coins like $VENKO, $NEIRO, and $POPCAT have shown that humor and financial gains can go hand in hand, while others like $MOTHER and $MEW bring a heartwarming touch to the scene. Whether you’re here for the memes, the community, or the potential gains, these meme coins offer a unique experience in the world of cryptocurrency.
The world of cryptocurrency, particularly the wild west of memecoins, has seen rapid growth in recent years. While innovation and excitement have fueled this trend, it has also given rise to controversies involving crypto influencers and promotional deals gone awry. One of the most recent and shocking allegations involves popular crypto influencer Jaypeg, who has been accused of orchestrating a promotional scam surrounding the launch of the Uptober memecoin.
This scandal opens the door to important questions about ethics, the role of influencers in promoting crypto projects, and the trustworthiness of the rapidly growing memecoin market. As more everyday investors enter the world of crypto, how should they navigate these murky waters?
The Allegations: Did Jaypeg Exploit His Influence for Profit?
The Uptober memecoin team claims that an agreement was made with Jaypeg, where the influencer would promote the token in exchange for 2% of the total supply. The value of this stake was roughly $2,200, a figure small by the standards of high-profile crypto promotions but significant in the context of an emerging coin. Jaypeg allegedly accepted the offer and received the tokens but swiftly turned around and sold them for profit, denying any prior agreement.
Members of Uptober’s Telegram group claim that after Jaypeg received the funds, he deleted the messages containing the addresses where the tokens were transferred, asserting that the wallet was random and not connected to him. This sparked outrage within the crypto community, with many seeing this as a classic pump-and-dump scheme—where a person uses their influence to drive up a token’s price before quickly cashing out, leaving other investors holding the bag.
Onchain Evidence: A Smoking Gun?
To unravel the truth, the Uptober team enlisted the help of well-known blockchain investigator ZackXBT. As an onchain sleuth, ZackXBT is respected for exposing frauds and scams in the crypto space, and his findings often hold weight in public opinion.
1/ A short story about how the influencer @0xjaypeg got caught lying to the community three times this weekend about an allocation for a project all for $2.2K. pic.twitter.com/Nvb5ZqsaXN
ZackXBT’s investigation revealed some compelling evidence. The wallet that received the Uptober tokens, which begins with “8jpz1p”, was not random as Jaypeg had claimed. In fact, ZackXBT uncovered that this wallet had previously claimed airdrop tokens from the Solana Saga smartphone in January 2024, just hours after Jaypeg posted an unboxing video of the same device. The connection between the wallet and Jaypeg was apparent, leading to further outrage from the memecoin community.
The Fallout: Public Apology and a Charitable Donation
Faced with mounting pressure, Jaypeg issued a public apology, but his defense was far from satisfactory for many. He reiterated that the wallet involved in the alleged scam was not his and that the accusations were part of a blackmail scheme against him. In an attempt to demonstrate goodwill, Jaypeg claimed to have donated $2,000 to The Turtle Foundation, a wildlife conservation charity.
However, critics were quick to call this out as a performative gesture aimed at deflecting blame rather than accepting responsibility. While donations to charities are commendable, this one appeared to some as a thinly veiled attempt to salvage his reputation amid a growing backlash. Many in the crypto community remain unconvinced of Jaypeg’s innocence.
Also read: Capitec Bank Blocks Crypto Payments Amid Fraud Concerns, Draws Industry Criticism
The Ethical Dilemma of Influencer Promotions in Crypto
Jaypeg’s alleged behavior shines a light on a growing issue within the cryptocurrency industry—the role of influencers. As crypto adoption accelerates, influencers have become key figures in promoting new projects. Their ability to sway public opinion makes them powerful allies for projects looking to gain visibility. However, this influence also comes with a responsibility that is often disregarded.
The problem of pump-and-dump schemes isn’t new to the crypto world, but as memecoins become more popular, the stakes are rising. The line between genuine promotion and manipulation is blurred when influencers fail to disclose the full nature of their involvement with a project. For retail investors, the results can be catastrophic: they may invest in a token believing it has legitimate backing, only to see its value plummet once the influencer cashes out.
Should Influencers Be Regulated?
In traditional markets, the Securities and Exchange Commission (SEC) and other regulatory bodies have strict rules governing promotions, endorsements, and disclosures. Failure to comply with these regulations can result in severe penalties, including jail time. Yet, the world of crypto remains largely unregulated, allowing influencers to operate in a grey area where they can profit from their recommendations with little to no oversight.
Some industry leaders are calling for stricter guidelines and accountability. Influencers who promote tokens should be required to disclose their financial interest clearly and transparently. In Jaypeg’s case, if the allegations are true, this scandal shows how the absence of such regulations allows influencers to mislead their audience without consequences.
The Bigger Picture: Trust in the Memecoin Market
Memecoins like Uptober, Dogecoin, and Shiba Inu have captured the imagination of retail investors, promising significant returns in short periods. But they are also notorious for their volatility and susceptibility to manipulation. As Murad Mahmudov, a prominent crypto analyst, pointed out, we could be in the midst of a “memecoin supercycle,” where speculation drives token prices to new heights before an inevitable crash. Memecoin creators and promoters often capitalize on the excitement of unsophisticated investors, resulting in massive losses for those caught in the frenzy.
In fact, Google search analytics show that memecoin searches are nearing their 2023 peak, while interest in more established assets like Bitcoin has hit a 1-year low. This data reflects the growing allure of speculative tokens but also highlights the inherent risks for investors. The Jaypeg controversy serves as a reminder that this burgeoning sector still lacks the maturity and trust that more established cryptocurrencies have built over time.
South Africa’s crypto community has expressed significant frustration following Capitec Bank’s recent decision to restrict electronic fund transfers (EFT) to cryptocurrency exchanges. The bank, which claims the measure is aimed at protecting clients from fraud, is instead urging customers to use its Capitec Pay app as an alternative—a move that many see as costly and limiting for crypto users.
Crypto Community Reacts with Dismay
Capitec’s announcement has ignited a backlash among cryptocurrency users and service providers, with many voicing their concerns over the implications of this restriction. For those accustomed to using affordable EFTs to move money into their crypto accounts, the shift to Capitec Pay represents a considerable price hike, with transaction fees soaring to 1% of the transfer value, and potentially up to 1.4% when additional service provider costs are included.
Farzam Ehsani, CEO of crypto exchange VALR, expressed his frustration on social media platform X, highlighting that such a move contradicts the global trend of making payments cheaper and more accessible. He argued that Capitec Pay adds unnecessary expense, especially at a time when exchanges have invested heavily in securing their licenses as Crypto Asset Service Providers (CASPs).
Capitec’s Justification: Fraud Prevention
In a statement, the bak justified the restrictions by pointing to its commitment to safeguarding clients from fraud. The bank stated,
Capitec is committed to protecting our clients from fraud, which is why we made the decision to block EFT [electronic funds transfer] and immediate (Real Time Clearing) payments to crypto exchanges on our app and business web interface. We recognise the increasing interest in cryptocurrencies and encourage users to utilise Capitec Pay as a secure alternative.
The bank further added that it is actively working with crypto exchanges to integrate Capitec Pay into their platforms to expedite the process.
Customer Rights and Revenue Motive
Critics argue that the bank’s move goes beyond fraud prevention and infringes on customers’ basic rights to spend their money as they see fit. Ehsani pointed out that other South African banks continue to allow customers to fund their crypto accounts without imposing such restrictions, suggesting Capitec’s decision is disproportionate to the actual fraud risks.
He also argued that a more appropriate response would have been to educate clients through pop-ups and warnings, rather than restrict their financial autonomy.
Some within the crypto community view the bank’s actions as an attempt to increase revenue by steering customers toward the more expensive Capitec Pay app, especially as the adoption of cryptocurrencies continues to grow in South Africa.
The Impact on Crypto Exchanges
The restrictions have already prompted responses from major crypto exchanges operating in South Africa. AltCoinTrader, for instance, was directly impacted by the changes but swiftly integrated Capitec Pay into its platform in collaboration with the bank’s technical team. Richard da Souza, CEO of AltCoinTrader, noted that while the restriction was an inconvenience, a solution was found in record time.
Other exchanges, such as Luno, took proactive measures by informing Capitec customers of alternative payment options like cards or switching banks to continue funding their crypto transactions. VALR announced that, while it is open to future integration with Capitec Pay, the current priority is working with other banks to provide more cost-effective solutions for its users.
In contrast to Capitec’s move, TymeBank has positioned itself as a crypto-friendly institution, offering services that support the transfer of funds to CASPs. Chris Becker, managing executive at TymeBank, emphasized that the bank has no intention of limiting customer freedom and aims to make crypto transactions easier over time.
Meanwhile, some industry experts, like Frank Leonette, founder of compliance service GloRep, acknowledge that while Capitec’s decision is “understandable” for now, it may ultimately hurt legitimate investors due to the higher transaction fees. Leonette also expressed doubt that the restriction would significantly curb fraud, as scammers typically exploit vulnerabilities in the banking system, not necessarily on crypto exchanges.
Customer Dissatisfaction Grows
Crypto influencers and venture capitalists, such as Brenton Naicker, have urged Capitec customers to voice their dissatisfaction with what many are calling an “Orwellian prescription” on how individuals can spend their money. There is growing sentiment among crypto advocates that banks should not dictate customer choices in such a restrictive manner.
Additionally, some speculate that crypto exchanges themselves may consider launching their own banking services to bypass traditional financial institutions entirely. VALR’s CEO Farzam Ehsani hinted at this possibility, suggesting on X that “perhaps VALR should consider becoming a bank in the future.”
Ethereum co-founder Vitalik Buterin has recently drawn attention to a critical issue within the Ethereum network—staking centralization. In a blog post published on October 18, 2024, Buterin emphasized that centralization poses a significant threat to the decentralized nature of Ethereum, particularly in how blocks are constructed and staking capital is provided. As Ethereum approaches its next upgrade, dubbed “Scourge,” Vitalik Buterin has outlined solutions aimed at addressing these risks to secure the blockchain’s future.
Staking Centralization: A Growing Risk for Ethereum
Vitalik Buterin identifies staking centralization as one of the most pressing challenges facing Ethereum Layer 1 (L1). This centralization occurs primarily at two critical points:
Block Construction: Presently, around 88% of Ethereum blocks are constructed by just two major actors, consolidating power and increasing the risk of transaction censorship. Such centralization is dangerous in a blockchain designed to foster decentralization, transparency, and openness. If a small group of entities controls the block-building process, they could potentially censor transactions and undermine Ethereum’s fundamental values.
Provision of Staking Capital: Centralization is also evident in the way staking capital is supplied. While approximately 30% of Ethereum’s total supply is currently staked—enough to protect the network from 51% attacks—the concentration of staked Ether in a few hands is a growing concern. Vitalik Buterin warns that if this figure continues to rise unchecked, it could weaken the security of the network by reducing the effectiveness of staking and leading to excessive issuance of Ether (ETH).
To counter these centralization trends, Vitalik Buterin proposes several innovative solutions, which he hopes will be implemented in the Scourge upgrade. These include:
Encrypted Memory Pools (Mempools): One of the proposed solutions is to introduce encrypted mempools, which would make it harder for block proposers to censor specific transactions. By encrypting transaction details until they are included in a block, this approach aims to level the playing field and reduce the ability of centralized actors to dictate which transactions are processed.
Inclusion Lists: Vitalik Buterin also suggests the use of inclusion lists, where stakers propose a list of transactions that builders are required to include in the next block. This would ensure that block proposers do not have the final say over transaction selection, thereby mitigating the risk of censorship by decentralized stakers.
In addition to block construction, Buterin has raised concerns about the staking capital itself. The growing percentage of Ether being staked, though beneficial in protecting against attacks, brings its own set of risks. Buterin proposes a few ways to prevent the negative side effects of an overly centralized staking system:
Staking Limits: One option is to limit the amount of Ether a single user can stake. By enforcing a cap on staked assets per user, Ethereum can distribute staking power more evenly across the network, ensuring that no single entity holds too much influence.
Two-Tier Staking System: Another solution under consideration is a two-tier staking system, where staked Ether would be divided into two categories: reducible and non-reducible portions. The reducible part would be more vulnerable to slashing (penalties for malicious activity), while the non-reducible part would be less exposed to such risks. This dual system would balance the need for network security with the prevention of staking dominance.
Upcoming Ethereum Fork: Pectra
These proposals come as part of Ethereum’s broader plan to maintain a balance between Layer 1 (L1) and Layer 2 (L2) fees while preparing for increased traffic on the network. The upcoming Pectra fork, scheduled for late 2024 or early 2025, will integrate many of these innovations, laying the groundwork for Ethereum’s next phase of growth.
Vitalik Buterin’s suggestions align with Ethereum’s long-term vision of creating a more accessible and decentralized ecosystem. By addressing staking centralization, Ethereum aims to uphold its principles of decentralization, protect against censorship, and ensure that it can handle mass adoption without compromising its core values.
Legal & General (L&G), a London-headquartered pension and investment management firm, is exploring blockchain-based tokenization of its investment funds, following the footsteps of financial giants like BlackRock, Franklin Templeton, and Abrdn. With $1.5 trillion in assets under management, L&G is assessing how tokenization can be integrated into its product offerings to increase efficiency, reduce costs, and make financial solutions more accessible to a wider investor base.
The Rise of Tokenization in Traditional Finance
Tokenization, which involves representing conventional assets such as U.S. Treasuries-backed money-market funds as tokens on a blockchain, has gained momentum in the traditional finance sector. Blockchain technology, known for its security and transparency, is increasingly being adopted to revolutionize how financial assets are traded, settled, and managed. The move to tokenization was significantly accelerated by BlackRock, the world’s largest asset manager, launching its BUIDL fund on the Ethereum blockchain. Other industry leaders, such as Franklin Templeton, State Street, and Abrdn, have also made similar strides into tokenized financial products.
In this environment, Legal & General Investment Management (LGIM), the asset management arm of L&G, is now considering entering the space to offer tokenized versions of its Liquidity funds.
According to Ed Wicks, Global Head of Trading at LGIM, the firm is actively exploring ways to make their liquidity funds available in tokenized formats. He emphasized the importance of digitizing the funds industry to enhance efficiency and reduce costs.
Digitization of the funds industry is key to improving efficiency, reducing cost and making a broad range of investment solutions available to a wider range of investors. We look forward to continued progress in this space.
Wicks said.
The tokenization of liquidity funds, often seen as low-risk, short-term investments, could open up significant opportunities for both institutional and retail investors. These funds could benefit from blockchain’s ability to streamline trading processes, increase transparency, and reduce intermediary costs.
Why is Tokenization Revolutionizing Asset Management?
Tokenization offers several key benefits for the asset management industry. By representing real-world assets on a blockchain, financial firms can:
Improve Liquidity: Tokenized assets can be traded more easily across global markets, increasing the liquidity of traditionally illiquid assets.
Reduce Costs: By cutting out middlemen and automating processes like settlement, tokenization can significantly reduce transaction costs.
Broaden Access: Tokenization enables fractional ownership of assets, allowing smaller investors to gain exposure to high-value assets that would otherwise be inaccessible.
Increase Transparency: Blockchain’s immutable ledger ensures all transactions are recorded and accessible, providing greater transparency and security for investors.
For traditional firms like L&G, adopting tokenization offers the opportunity to enhance product offerings, attract new investors, and remain competitive in a rapidly evolving financial landscape.
L&G’s Blockchain History
L&G’s interest in blockchain technology is not new. As far back as 2019, the firm announced plans to use Amazon Web Services’ (AWS) managed blockchain system to manage and record bulk annuities in its insurance business. This early exploration into blockchain set the foundation for L&G’s current foray into tokenizing investment funds. The shift from using blockchain for internal processes to offering blockchain-based products directly to investors highlights L&G’s growing commitment to embracing digital innovation.
Challenges and the Future of Tokenization in Asset Management
While the advantages of tokenization are evident, the technology is still in its nascent stages within traditional finance. Regulatory hurdles, security concerns, and investor education are key challenges that firms like L&G must address as they move forward with blockchain-based products. However, with major players like BlackRock, Franklin Templeton, and Abrdn already making strides, it is clear that tokenization is here to stay and will likely reshape how financial institutions operate in the years to come.
As Japan approaches its highly anticipated elections on October 27, 2024, the leader of the Democratic Party for the People (DPP), Yuichiro Tamaki, has introduced a bold proposal aimed at positioning Japan as a global leader in the Web3 space. Tamaki has pledged to lower the tax rate on cryptocurrency gains to 20%, a significant drop from the current progressive taxation rate of 15% to 55%.
This move, he argues, will not only make Japan more competitive on the global crypto stage but also enhance individual financial freedom, innovation, and adoption of Web3 technologies.
Tamaki’s Vision for Crypto Tax Reform
In a statement posted on X (formerly Twitter) on October 20, Tamaki directly addressed the taxation of cryptocurrency, stating, “If you think crypto assets should be taxed separately at 20% instead of treated as miscellaneous income, please vote for the Democratic Party for the People.”
Currently, Japan taxes crypto gains as miscellaneous income, meaning that individuals can be taxed at rates ranging from 15% to 55%, depending on their income level. For high-income earners, particularly those making more than 40 million Japanese yen (about $268,000), the tax burden is significant. In contrast, stock market profits in Japan are taxed at a flat 20%, and Tamaki believes cryptocurrency gains should be treated similarly.
Under his plan, not only would the tax rate on crypto be slashed to 20%, but Tamaki also seeks to eliminate taxable events when individuals exchange one cryptocurrency for another. This reform is aimed at fostering greater freedom and flexibility for crypto traders and investors, encouraging more activity in the sector without the fear of immediate taxation.
Beyond tax reform, Tamaki’s policy goals align with his broader ambition of positioning Japan as a leader in the Web3 space, which encompasses decentralized technologies like blockchain, digital assets, and smart contracts. Responding to a query from an X user, he said that his party would consider imposing tax cuts on other financial income in the future, but for now, the focus is on Web3 innovation. He added, “We want to make Japan a strong nation in the Web3 business.”
Japan, with its well-established technology sector, is seen as a prime candidate to lead the world in Web3 adoption. However, the country’s high taxation on cryptocurrencies and stringent regulations have stifled some innovation in the past. Tamaki’s proposal seeks to address these issues by providing a more business- and investor-friendly environment for crypto-based businesses and individual investors alike.
Challenges Ahead for Tamaki and the DPP
While Tamaki’s vision for Japan’s crypto future has gained attention, his Democratic Party for the People (DPP) faces an uphill battle in turning these ideas into reality. The party currently holds only seven seats out of 465 in the House of Representatives. Despite this, there are signs that the DPP could increase its representation, potentially securing as many as 20 seats according to some opinion polls. However, the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito are expected to retain a majority in the upcoming elections.
Tamaki’s proposal also comes amid ongoing discussions in Japan about overhauling the country’s tax code. In August 2024, Japan’s Financial Services Agency (FSA) announced plans to introduce a comprehensive overhaul of the nation’s tax system by 2025, including provisions aimed at reducing the tax burden on cryptocurrencies. While this marks a step in the right direction, the current corporate tax rate for crypto holders remains high at 30%, even if the company does not sell any of its holdings.
For individuals, the current tax regime places a heavy burden on those earning large incomes from crypto trading, which has been seen as a deterrent to wider adoption and trading in the country. Tamaki’s proposal is therefore timely and aligned with the broader goal of making Japan a more crypto-friendly nation.
Japan’s Crypto Tax Landscape: The Need for Change
Japan’s crypto tax policy has long been a point of contention within the industry. Crypto tax firm KoinXhas noted that the current tax rate on crypto gains can be as high as 55%, making it one of the highest in the world. Many within the crypto community have pointed out that such high rates discourage both domestic and international investments in Japanese blockchain startups, pushing innovators to look elsewhere.
Tamaki’s proposal, which aligns crypto tax rates with those on stock market gains, aims to remedy this by creating parity and providing more incentives for crypto investors to operate within Japan’s borders. His plan is a significant step towards providing regulatory clarity and fostering a more business-friendly environment for the burgeoning digital economy.
