Key Insights:
US SEC has classified memecoins as collectibles, equating them to baseball cards for all financial purposes.
This move is expected to bring relief as well as bullish sentiments to the memecoins.
Lately, memecoins have been in some controversial situations.
Further, the end of memecoin supercycle had caused severe corrections in these markets.
In a latest turn of pro-crypto moves, the Donald Trump administration and SEC, led by acting Chairman Mark Uyeda have decided to classify memecoins as collectibles and not security for all taxation and regulatory purposes.
As per the SEC, the direct reason is that these cryptocurrencies have no utility and hence could not be termed as a security as per the US Securities Act 1933.
There could be several regulatory constraints that led to this decision. Firstly, the SEC has limited manpower to regulate the multi-trillion US Security markets (stocks, bonds, and other assets). Secondly, it was getting impossible to regulate the memecoin industry, which saw several thousand launches per day. Finally, Donald Trump's liberalization program for crypto businesses needed a boost from the SEC.
Trump had previously canceled all the Biden-era crypto executive orders.
Yes, the SEC most likely de-regulated memecoins because of the $TRUMP coin. After the launch and instant success of Trump coin, there were several launches on the Solana blockchain.
At the peak of the memecoin mania, there were at least 50k memecoin launches per day. With limited resources, it would be impossible for any regulator to regulate such a large industry.
The latest regulation has turned all memecoins into potential wealth makers with far less restrictions. These coins would now be traded on any exchange, via any platform, and perhaps without any permission and minimal regulatory compliance.
This de-limitation could spark a new rally in memecoins as most of the industry is essentially de-regulated for all practical purposes.
You can now buy or sell memecoins just like you were collecting sci-fi figurines, movie posters, baseball cards, antique coins and other collectibles without having to worry about filling long tax forms.
Dogecoin remains the top choice from a long-term perspective because it is the closest chain to the Bitcoin blockchain in terms of security and architecture. In some aspects, it is even faster making it a good alternative for Bitcoin.
Dogecoin Price Trend in the Last 1 Year
CoinMarketCap
In the future, as blockchain-based cross-border transactions take a greater shape, we believe single purpose blockchains like XRPL, Dogecoin, and Litecoin will see a very strong demand.
Next, coming on to the tokenomics, DOGE is one of the most widely distributed crypto with over 4 million wallets holding it. The initial promoters have no stake, which ends the possibility of a rug-pull. With an almost fixed inflation of 5%, DOGE could be a crypto to store wealth for the long-term.
Finally, with an ETF coming along, DOGE could see greater heights this year.
Shiba Inu is another great choice for a memecoin that has a long-term future potential. SHIB has a greatly developed ecosystem with several DEXs, DeFi protocols, and a fast layer-2 blockchain Shibarium.
Shiba Inu Price Trend in the Last 1 Year
CoinMarketCap
Further, Shiba Inu's tokenomics will now be controlled by Shiba Inu DAO, perhaps starting in 2025, which would not only keep a lid on its high token supply (589 trillion) but also help increase the burn rate via several methods.
By the year 2050, we expect Shiba Inu would be developed enough to let its token surpass the $0.01 level.
Trump Coin Price Trends Since Launch on 18 Jan 2025
CoinMarketCap
The Trump coin might not be a token for the year 2050, but it will stay in the news for the next 4 years or till the period Donald Trump remains politically relevant.
Initially, the launch of Trump saw very high interest from the crypto markets, something that crashed Solana. However, lately, it has been witnessing high decline as users get wary of its tokenomics.
We still believe that the token will be a top memecoin because a lot of crypto regulations are expected in 2025 and these events could result in increased popularity of Donald Trump, eventually driving TRUMP prices higher.
Pepecoin Price Trend in the Last 1 Year
CoinMarketCap
Pepe has been a top memecoin in the crypto world and has almost a cult status after hundreds of copycat Pepe memecoins were created. This newly built ecosystem made Pepe even more popular. Further, with the Pepe Unchained blockchain, this ecosystem got a bit more stronger.
We believe that the need for relevancy in the long-term might force Pepe to become a utility-driven memecoin. Further, as Web3 gaming re-emerges in 2025, this memecoin sees a much greater potential if it plans its own metaverse-based game.
In the long-term, we expect Pepe to reach $0.01 if it manages to increase the utilitarian side of its project.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.