This session captures a detailed discussion among several speakers about the current state and future of the cryptocurrency market. The conversation begins with introductions, where participants share their backgrounds and experiences in the crypto space. Speakers include @encryptedbae, @0xmugen, @anndylian, @cryptowendyo, @crypto_birb, @Crypto_Assessor , among others, who bring diverse perspectives from content creation, trading, and project development.
The discussion touches on various topics, including the current market sentiment, the role of meme coins, NFTs, and the impact of regulatory developments. Some participants express optimism about the market, despite recent downturns, emphasizing the cyclical nature of crypto and the importance of patience and risk management. They highlight that while Bitcoin is down from its all-time high, the overall market structure remains strong, and opportunities still exist, particularly in more volatile assets.
There is a discussion on the potential of meme coins and NFTs, noting that while many projects lack utility, some, like Doge and Shiba Inu, have built significant ecosystems. It is argued that meme coins are here to stay due to their strong community support and potential for future utility. The conversation also explores the idea of NFTs and meme coins as community tokens for brands and celebrities, suggesting that these digital assets could play a significant role in fan engagement and brand loyalty.
A comprehensive analysis of the market is provided, using historical data and technical indicators to predict future trends. The importance of following market trends rather than trying to predict exact peaks is emphasized, suggesting that the best strategy is to trail stop losses and let the market dictate actions. The potential impact of regulatory developments in the US and Europe is highlighted, noting that clearer regulations could drive more retail and institutional investment into the market.
The speakers agree that the market is currently in a consolidation phase, with significant growth expected in the fourth quarter of 2024 and the first quarter of 2025. They discuss the potential catalysts for the next big bull run, including regulatory clarity, the adoption of Bitcoin ETFs, and the entry of institutional investors. The conversation concludes with a consensus that while the market may experience short-term volatility, the long-term outlook for cryptocurrencies remains bullish, driven by increasing adoption and technological advancements.
Full recording of X Spaces can be found here:
https://x.com/Cointelegraph/status/1804126280050167938
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
The shocking news of Joe Biden’s withdrawal from the 2024 United States presidential election race has sent shockwaves through the financial markets, including the crypto community, particularly concerning liquidations.
Such sudden political news caused significant market volatility. In the 30 minutes following President Biden’s announcement, around $67 million worth of leveraged long positions in the crypto market were sold, data on Coinglass showed.
Total liquidation of crypto assets in 1-hour time slots in the last 24 hours. Source: Coinglass
We spoke to industry experts to see where their thoughts stand, on the future of the cryptocurrency industry ahead of the upcoming US presidential elections.
Key Takeaways
Biden’s unexpected withdrawal caused significant market volatility, leading to the liquidation of around $67 million worth of leveraged long positions within 30 minutes.
Investors are unsure whether the next administration will adopt a more stringent or lenient approach to cryptocurrency regulation, causing market volatility as they adjust their positions.
Trump’s entry into the presidential race with a pro-crypto agenda has fueled speculation that his potential victory could lead to favorable regulations and broader adoption of cryptocurrencies.
Harris’s position on cryptocurrency regulation remains unclear, adding to market uncertainty.
The outcome of the presidential election is expected to have a significant impact on the cryptocurrency market.
Crypto Markets Strongly React to Biden’s Exit
Cryptocurrency markets are known to react loudly and effectively to stressful political events, and Biden’s exit from the presidential election campaign was no exception.
During that time, the price of Bitcoin (BTC) fell by around 1.4% from $67,461.61 to $66,493.43. The cryptocurrency has been volatile ever since, falling to as low as $65,500 on July 23, 2024, and currently trading at about $66,000.
Anndy Lian, an intergovernmental blockchain expert and author of Blockchain Revolution 2030, told Techopedia that Biden’s “unexpected withdrawal introduced a level of unpredictability, causing investors to quickly adjust their positions” in the market. The immediate liquidation of long positions indicated that many traders were “caught off guard and moved to mitigate potential losses.”
On top of that, Biden’s endorsement of Kamala Harris has the potential to reshape the political landscape, further influencing market sentiment. Lian said:
“Investors might have perceived Harris as having different policy stances on cryptocurrency regulation compared to Biden, prompting a reassessment of the market’s future. This shift in political dynamics can lead to volatility as traders speculate on how new leadership might impact the regulatory environment for cryptocurrencies.”
Ben Kurland, the CEO of crypto research and charting platform DYOR, added that Biden’s announcement is largely seen as a positive within the crypto community, which was also reflected in BTC’s price which gained about 2.8% after falling by 1.4% post-announcement.
“Investors reacted strongly to the news as Biden’s exit signals a shift in future regulatory policies. The prospect of a new administration with positive views on cryptocurrency is seen as a bullish sentiment. This development indeed suggests that the upcoming elections could have a much larger impact on the crypto market than previously anticipated.”
Biden’s Decision Triggered Uncertainty Over Future Regulations
The relationship between the US and its regulatory policies regarding cryptocurrency markets is a never-ending story, and Biden’s decision to exit the presidential race has certainly opened up new concerns about where regulatory policies, economic strategies, and international relations could be headed in the future.
“Cryptocurrencies are particularly sensitive to regulatory news. Under Biden’s administration, there were ongoing discussions and actions regarding the regulation of digital assets. His exit could mean a potential shift in regulatory approaches depending on who succeeds him.
“Investors might anticipate either a more stringent or a more lenient regulatory environment, leading to volatility in the market as they adjust their positions based on these expectations,” Lian noted.
Vijay Pravin Maharajan, the CEO and founder of bitsCrunch, an AI-enabled decentralizedblockchain data network, added that following Biden’s announcement, investors could expect more of Trump’s crypto-friendly rhetoric, especially at the upcoming Bitcoin Conference in Nashville, where Trump is due to speak.
However, Maharajan also reminded that in the long term, the future of crypto will still hinge on progressive regulatory advancements and not just pure speculation.
Of course, Biden’s exit also means that investors and stakeholders will now closely be watching the new candidate’s stance on crypto regulation, as it has the potential to significantly influence market sentiment and investment strategies.
DYOR’s Kurland added that with Biden’s exit, many in the crypto industry are confident that Trump could win the elections.
Alex Momot, the founder and CEO of Peanut Trade told Techopedia that while Biden’s exit might not play a significant role for the future of crypto, it could still affect Republican policies and the overall expectation that Trump could become the next president.
Momot added that in that case, regulations from the Vice President or rumors about Larry Fink could also play a very positive role in the crypto industry. In recent days, the New York Post reported that if Trump wins the elections, he could appoint BlackRock’s CEO, Larry Fink, as the next Treasury Secretary due to their shared history. However, Trump denied this possibility.
DYOR’s Kurland added that Trump has shown he is willing and able to support crypto, especially in his recent comments that BTC and other digital currencies “are very much here to stay.”
“If Trump wins, I believe it will not simply be an initial shock but will likely propel Bitcoin to new heights and allow for more innovation and growth in the sector in the US, which should time up nicely with an anticipated extension to this bull market cycle.”
However, all of this could also be very ambiguous as it highly depends on where Kamala Harris stands in relation to cryptocurrency policies.
Kamala Harris & Crypto: An Uncharted Territory
Speaking with Techopedia, Lian noted that Harris’s stance on cryptocurrency policies continues to remain ambiguous. However, in a recent interview with Decrypt, US entrepreneur and BTC enthusiast Mark Cuban noted that he has received a handful of questions about crypto from Harris’ campaign team.
Lian added that Harris does have a history of being tech-friendly, stemming from her time as District Attorney of San Francisco and Attorney General of California, where she engaged with the tech industry extensively. Thus, her background suggests she may have a more open and innovative approach to technology, including cryptocurrencies.
“Secondly, as Vice President, Harris has been part of an administration with a cautious but progressive stance toward digital assets,” Lian added. “The Biden administration has focused on balancing innovation with consumer protection and regulatory oversight. If Harris continues in this vein, we might expect her to support a regulatory framework that encourages innovation while ensuring market stability and protecting investors.”
Michael Brescia, the CEO and co-founder of Cerus Markets, agreed, noting that while Democrats tend to be more pro-regulation than Republicans, there is a slight possibility that Harris will take a more balanced approach toward crypto regulation.
However, since Harris is yet to outline her views on crypto regulation, it leaves much room for speculation.
BitsCrunch’s Maharajan added:
“Given the plaudits that Trump has received from the crypto community, the Harris campaign should at the very least outline their plan for fostering crypto innovation on US soil. Talk of overly restrictive policies would certainly dampen market momentum.”
The Bottom Line
After speaking with some pro-crypto experts, Lian noted that the general sentiment within crypto circles is that Trump could win the current US presidential election, especially given the ongoing aftermath of Biden’s exit.
“To be very honest, I did a quick poll and most of my pro-crypto friends are all assuming that Trump will win. Most of them do not care about Harris. Maybe this is also an Elon Musk effect.”
Biden’s exit has definitely added a “wild card” to the election campaign, Cerus Markets’ Brescia added, making the outcome much harder to predict than ever before. On the contrary, he believes that the current events have led Trump’s odds of winning the election to decline.
One thing stands clear, however: no one can predict the direction of the crypto markets unless Harris opens up about her stance on crypto regulations.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
A trend is making a comeback: the celebrity-launched cryptocurrency token.
These are often branded with a celebrity’s intellectual property (IP), marketed to fans as unique investment opportunities.
However, this trend has sparked significant controversy and legal scrutiny — primarily revolving around whether these tokens qualify as securities and, if so, whether they violate current financial regulations.
The concept of celebrity tokens is relatively straightforward. A celebrity, leveraging their fame and brand, issues a digital asset on a blockchain platform.
These tokens can serve various purposes, such as granting fans exclusive access to content, merchandise, or events. In some cases, they are marketed as investment opportunities with the promise of potential financial returns.
The allure for fans is clear: they get to own a piece of their idol’s brand and potentially profit from their success.
But there is much to discuss first.
Key Takeaways
Celebrity-launched cryptocurrency tokens are making a comeback, marketed as unique investment opportunities using their intellectual property.
These tokens face controversy and legal scrutiny, especially around whether they qualify as securities under the Howey Test.
Celebrity tokens often involve investment of money, rely on the celebrity’s brand, and promise potential profits, making them likely to be classified as securities.
The SEC has taken action against several celebrities for promoting such tokens without proper disclosures, highlighting the legal risks.
Ethical concerns arise as celebrities’ influence may lead fans, who may lack financial literacy, to invest without understanding the risks, potentially resulting in significant financial losses.
The primary legal issue surrounding celebrity tokens is whether they qualify as securities under existing financial regulations. In the United States, the Securities and Exchange Commission (SEC) uses the Howey Test to determine whether a transaction qualifies as an investment contract and is thus a security.
According to the Howey Test, a transaction is considered an investment contract if it involves an investment of money in a common enterprise with an expectation of profits primarily from the efforts of others.
Applying the Howey Test to celebrity tokens, several key points emerge:
First, fans are indeed investing money to purchase these tokens.
Second, the success of the token is often tied to the celebrity’s brand and activities, which constitutes a common enterprise.
Finally, the expectation of profits is a significant factor, especially when tokens are marketed as investment opportunities.
Therefore, many celebrity tokens likely meet the criteria for being classified as securities.
Similarly, in 2020, the SEC charged actor Steven Seagal for failing to disclose payments he received for promoting an initial coin offering (ICO).
Same for Kim Kardashian in 2022. She has been charged for promoting a crypto asset security from EthereumMax on social media without revealing her compensation for the endorsement.
Kardashian has consented to resolve the allegations, agreeing to pay penalties, disgorgement, and interest totaling $1.26 million and to assist with the Commission’s continuing inquiry.
I still remember SEC Chair Gary Gensler saying:
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors.
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
These enforcement actions underscore the SEC’s stance that celebrity endorsements of cryptocurrency investments must comply with securities laws. Failure to do so can result in significant penalties, including fines and bans from participating in future securities offerings.
The Downsides of Celebrity Coins
Beyond the legal implications, there are ethical concerns associated with celebrity-launched tokens. Celebrities wield significant influence over their fans, many of whom may lack the financial literacy to fully understand the risks involved in investing in digital tokens.
This creates a power imbalance, where fans may be swayed by their admiration for the celebrity rather than a rational assessment of the investment’s merits.
Moreover, the volatile nature of the cryptocurrency market means that these tokens can experience significant price fluctuations. Fans who invest in these tokens may suffer substantial financial losses, leading to potential backlash against the celebrity. This raises questions about the responsibility of celebrities to protect their fans from financial harm.
To illustrate the potential pitfalls of celebrity tokens, consider the case of Akoin, a cryptocurrency launched by musician Akon. Akoin was marketed as a tool for economic empowerment in Africa, with plans to build a futuristic city in Senegal powered by the cryptocurrency.
While the project garnered significant attention, it also faced skepticism and criticism. As of early 2024, the project has yet to deliver on many of its promises.
There Be Dragons
While not all celebrity tokens are ICOs, the parallels are clear: the lack of regulation and oversight in the cryptocurrency space creates an environment ripe for fraud and financial mismanagement.
Proponents of celebrity tokens argue that they represent a new and innovative way for celebrities to engage with their fans. By issuing tokens, celebrities can create unique experiences and foster a sense of community among their supporters. Additionally, these tokens can provide a new revenue stream for celebrities, allowing them to monetize their brand in novel ways.
However, critics contend that the risks far outweigh the benefits. The potential for financial loss, coupled with the lack of regulatory oversight, makes celebrity tokens a precarious investment. Furthermore, the ethical concerns surrounding the exploitation of fan loyalty cannot be ignored. Celebrities have a responsibility to ensure that their actions do not harm their fans, and promoting potentially risky investments undermines this duty.
The phenomenon of celebrity-launched tokens presents a complex web of legal, ethical, and financial considerations. While these tokens offer a novel way for celebrities to engage with their fans, they also raise significant concerns about compliance with securities regulations and the potential for financial harm to investors.
The Bottom Line
As the cryptocurrency market continues to evolve, regulators, celebrities, and fans alike must remain vigilant and informed about the risks and responsibilities associated with this emerging trend.
The SEC’s enforcement actions and the volatile nature of the cryptocurrency market serve as stark reminders of the potential pitfalls. Ultimately, the question of whether celebrity tokens are securities is not just a legal issue but a broader ethical one.
If you notice, I did not mention any tokens or cite any recently launched examples. I do not want to create FUD; I just want to caution everyone.
Lastly, celebrities must weigh the potential benefits against the risks and consider their responsibility to their fans. Only by doing so can they operate in a way that is both legally compliant and ethically sound.
Be responsible to your fans. With great influence comes great accountability; wield your platform with integrity and purpose.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
