{"id":137471,"date":"2024-12-15T23:25:58","date_gmt":"2024-12-15T16:25:58","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=137471"},"modified":"2024-12-15T23:25:58","modified_gmt":"2024-12-15T16:25:58","slug":"memecoins-like-fartcoin-are-riding-trumps-victory-to-huge-valuations-experts-say-it-may-have-only-begun","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=137471","title":{"rendered":"Memecoins like Fartcoin are riding Trump&#8217;s victory to huge valuations. Experts say it may have only begun."},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p class=\"\">Yes, it\u2019s called Fartcoin.\u00a0Yes, it is totally useless.<\/p>\n<p class=\"\">And yes, it has nevertheless tripled in value over the past week to a market capitalization of more than $700 million \u2014 about equal to those of Office Depot, Guess jeanswear, and the parent company of Steak N\u2019 Shake.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n<p class=\"\">The carnival-casino era of cryptocurrencies has come back with a vengeance, riding a broader wave of investment in bitcoin that was itself spurred by the election of Donald Trump. It\u2019s minting millionaires while potentially harming others \u2014 yet everyone, even the losers, seem to be in on the joke.<\/p>\n<p class=\"\">The wave of \u201cmemecoiners\u201d is a mix of\u00a0longtime bitcoin holders and people simply desperate to change their fortunes in an era of sky-priced homes and equities, according to Toe Bautista, research analyst for GSR, a decentralized finance group. While many memecoin traders, flush from gains thanks to bitcoin\u2019s 130% increase this year \u2014 50% of which has come since Trump\u2019s election last month \u2014 are simply \u201cmoving down the risk curve\u201d into areas of pure speculation, Bautista said. Others see the potential of making 10 times their money overnight.<\/p>\n<p class=\"\">\u201cA lot of it is people thinking, \u2018I can get some sort of edge by having a better chance at a lottery ticket,\u201d Bautista said.\u00a0\u00a0<\/p>\n<p class=\"\">Memecoin buyers and sellers alike are, for the most part, aware that their trading activity amounts to the riskiest kind of gambling, Bautista said. It\u2019s all about exiting one\u2019s position to avoid getting left with \u201cholding the bag\u201d and failing to trade up and strike while the price is hot.<\/p>\n<p class=\"\">\u201cBecause they\u2019re worthless, you\u2019re betting on the \u2018greater fool,\u2019\u201d he said, referring to the idea that someone else will pay a higher price for a given memecoin. \u201cYou\u2019re thinking, \u2018I\u2019m early to this, someone will buy the bags.\u2019 But there\u2019s no underlying driver of its value.\u201d<\/p>\n<p class=\"\">For the most part, the greatest risk in trading memecoins, which tend to be based on the lifespan of viral internet memes, is the meme itself fading away from the cultural zeitgeist. And indeed, the gains from a given news cycle for a very select few can be substantial. Blockchain data shows at least one holder of a coin created in the wake of the Peanut the Squirrel incident last month, which involved the death of a rodent possibly being kept without permission by a New York man, is sitting on nearly half a billion dollars.\u00a0\u00a0\u00a0<\/p>\n<p class=\"\">Today, that coin, PNUT, is down about half from its peak value of $2.47 as that news story has faded from view.\u00a0<\/p>\n<p class=\"\">Yet there are also operational risks to memecoins, as illustrated by the <a href=\"https:\/\/www.nbcnews.com\/tech\/hawk-tuah-girl-haliey-welchs-crypto-launch-scrutiny-rcna183098\" target=\"_blank\" rel=\"noopener\">rise and rapid fall of \u201cHawk\u201d coin<\/a>, released earlier this month by Haliey Welch, a Tennessee woman who has parlayed a viral lewd street interview into a successful podcast.\u00a0<\/p>\n<p class=\"\">Over the course of 24 hours, Hawk\u2019s market cap peaked at $500 million before collapsing to $28 million, prompting complaints about dramatic losses in funds. Those complaints have not been independently verified by NBC News.\u00a0<\/p>\n<p class=\"\">Facing accusations of insider trading, Welch released a statement saying neither she nor anyone on her team had sold the coins, blaming instead \u201csniper\u201d algorithmic bots designed to sell as prices begin to surge.<\/p>\n<p class=\"\">Bautista said that indeed, algorithmic trading, which has long been part of mainstream trading on Wall Street, is now routinely deployed in the memecoin space. He estimates that of the top-20 traded coins in crypto, half are memecoins whose trades are almost entirely driven by bots designed to spot and respond to price movements.<\/p>\n<p class=\"\">Is it legal? Some believe memecoins are permitted because the Securities and Exchange Commission has never formally categorized bitcoin as a security. Yet the agency has taken actions against exchanges that have permitted trading of other tokens. And, crucially, many memecoins, including Fartcoin, do not appear able to be legally purchased from U.S. soil on most of the crypto exchanges offering them.<\/p>\n<p class=\"\">Ground zero for launching memecoins is a website called Pump.fun, which allows users to \u201claunch a coin that is instantly tradeable in one click for free.\u201d Launched in January 2024, the site has generated over $288.4 million in revenue since its inception, according to analytics data <a href=\"https:\/\/cointelegraph.com\/news\/fca-issues-warning-bans-pump-fun-uk\" target=\"_blank\" rel=\"noopener\">cited by CoinTelegraph<\/a>, a crypto industry publication.\u00a0<\/p>\n<p class=\"\">Earlier this month, the United Kingdom\u2019s Financial Conduct Authority said the website was not authorized in the country and warned anyone who interacted with a product or service associated with the site had no investor protections.<\/p>\n<p class=\"\">Despite this, the site\u2019s terms and conditions state that its provisions are governed by \u201cthe laws of England.\u201d<\/p>\n<p class=\"\">A spokesperson for the website was not immediately available for comment.\u00a0\u00a0\u00a0<\/p>\n<p class=\"\">It may be the digital Wild West, but some tools have been developed to help nonsavvy memecoin participants avoid outright scams. A site called Rugcheck.xyz bills itself as capable of scanning memecoin ownership data to determine whether an actor or small group of actors are capable of putting their thumb on the scale of the market. Pump.fun itself says it prevents \u201crugs,\u201d or sudden price dumps, by making sure that any tokens it launches have no presales or small-batch allocations that would benefit insiders.\u00a0<\/p>\n<p class=\"\">It is not clear how much longer the current crypto \u201cbull\u201d cycle will last, but at least one analyst believes it is still in relatively early innings given likely developments next year \u2014 namely, potentially further reductions in interest rates by the Federal Reserve, and the implementation of more crypto-friendly policies by the Trump administration.<\/p>\n<p class=\"\">\u201cThere are lots of events in 2025 that can help drive bitcoin and crypto prices up further,\u201d said Gracy Chen, CEO of crypto group Bitget, in an interview with NBC News.\u00a0<\/p>\n<p class=\"\">In fact, Trump world has already shown signs of accelerating its embrace of cryptocurrencies. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-12-13\/trump-s-world-liberty-is-buying-niche-tokens-worth-millions-of-dollars?utm_source=website&amp;utm_medium=share&amp;utm_campaign=twitter\" target=\"_blank\" rel=\"noopener\">Bloomberg News reported on Friday<\/a> that World Liberty Financial, a crypto project \u201cinspired by Trump,\u201d has been buying millions of dollars worth of tokens beyond bitcoin, a sign that the decentralized finance lending platform could launch soon. Trump has been named as an eventual \u201cfinancial beneficiary\u201d of World Liberty.\u00a0\u00a0<\/p>\n<p class=\"\">A spokesperson for World Liberty did not respond to a request for comment.<\/p>\n<p class=\"\">Yet there is clearly a dark side to the memecoin world. Omid Malekan, who teaches crypto at the Columbia Business School at Columbia University, said it is emblematic of the economic \u201cnihilism\u201d that has taken root among many young Americans who feel they have been priced out of the American Dream.\u00a0<\/p>\n<p class=\"endmark\">\u201cAll these kids are like, \u2018All the good stocks are way too expensive. And houses? I can\u2019t afford them,\u2019\u201d Malekan said. \u201cSo, \u2018I\u2019ll gamble on something that can \u201810x\u2019 my money, and if I lose it all, Who cares, I was screwed anyway.\u2019\u201d<\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.nbcnews.com\/business\/personal-finance\/memecoins-what-are-they-why-are-they-popular-cryptocurrency-rcna184223\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yes, it\u2019s called Fartcoin.\u00a0Yes, it is totally useless. And yes, it has nevertheless tripled in value over the past week to a market capitalization of more than $700 million \u2014 &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=137471\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-137471","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/137471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=137471"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/137471\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=137471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=137471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=137471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}