Tag Archives: opportunity

Panel Discussion: Memecoin – Bubble or Opportunity?

Panel Discussion: Memecoin – Bubble or Opportunity?

 

Fueled by online communities and viral marketing, these tokens, often bearing the faces of internet memes, have exploded in popularity, leaving many to wonder: are meme coins a fleeting bubble, a legitimate investment opportunity, or a cultural phenomenon reshaping the financial landscape?

A recent panel discussion at Pheromones Party, a side event of Korea Blockchain Week 2024, tackled this question, bringing together experts from various corners of the crypto ecosystem to share their insights.

The Allure of Volatility and Community

Ruben Brons, representing Flow Traders, a global market-making firm, highlighted the perspective of institutional players. While acknowledging the significant trading volume generated by meme coins, he emphasized that institutions are primarily driven by stability and regulated products. With its inherent volatility, the meme coin landscape doesn’t yet offer the security and structure that traditional institutions seek.

However, the panel agreed that the volume is a testament to the power of meme coins. Sam, Chief Business Development Officer at 1inch, a leading DEX aggregator, argued that meme coins have successfully onboarded a new generation of crypto users. Their familiarity with internet culture and meme-driven humor makes them more receptive to this entry point into the crypto world.

Claire Dang, Head of Growth at a prominent Web3 educational platform, echoed this sentiment, emphasizing the cultural significance of meme coins. She drew parallels between meme coins and the early days of NFTs, where shared ownership of digital assets fostered a sense of community and belonging. This cultural relevance, she argued, is a key factor in the sustainability of certain meme coins like Dogecoin and Shiba Inu, which have successfully cultivated dedicated communities around their brands.

Sustainability and the Institutional Question

While acknowledging meme coins’ community-building potential, the panel also addressed concerns about their long-term viability. Kevin, Head of Growth at Monad Labs, pointed out that the meme coin space is prone to rapid boom-and-bust cycles. While some tokens might experience explosive growth, many fade into obscurity just as quickly.

The question of institutional adoption also sparked debate. While some panelists, like Sam, believe that institutional interest in meme coins is still a long way off, others, like Anndy Lian, see the influx of capital into the broader crypto market as a positive sign, suggesting that institutions might eventually warm up to the idea of meme coins.

Navigating the Meme Coin Landscape

The panel concluded with a resounding message of caution for investors. While meme coins present a unique opportunity for profit, they also carry significant risks. Claire stressed the importance of education and due diligence, urging investors to thoroughly research any project before investing.

Anndy Lian ended the panel by saying, “The future of memes will mature into a more established asset class, attracting institutional capital and driving further innovation. For now, they remain a playground for retail investors, driven by speculation and fleeting trends, too. Only time will tell. However, one thing is clear: meme coins have tapped into a powerful cultural current, and their impact on the crypto ecosystem is undeniable.”

The Pheromones Party is organized by MemeCore and co-hosted by OKX Wallet, OKX Ventures, and Shiba Inu.

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”.

www.anndy.com
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Beware the Celebrity Crypto Tokens: Opportunity or Minefield?

Beware the Celebrity Crypto Tokens: Opportunity or Minefield?

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.

The SEC has already taken action against several high-profile individuals and entities in the cryptocurrency space. For instance, in 2018, the SEC settled charges with professional boxer Floyd Mayweather and music producer DJ Khaled for promoting Initial Coin Offerings (ICOs) without disclosing that they were paid for their endorsements.

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.

 

Source: https://www.techopedia.com/beware-the-celebrity-crypto-tokens-opportunity-or-minefield

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”.

www.anndy.com
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KBCC Panel 1: Blockchain Technology, Development, Innovation & Opportunity

KBCC Panel 1: Blockchain Technology, Development, Innovation & Opportunity

Korea Blockchain Conference (KBCC) was held at the Grand InterContinental Seoul Parnas Grand Ballroom on the 15th February 2022.

KBCC was conceptualized and curated to help the growth and development of the blockchain industry. The event helps to let the South Korean audiences know more about the technology and also bringing foreign talents to share their experiences with the local.

The opening session was given by HS88 Chairman Kim Ho-seong. The session ended with a video congratulatory speech by Won Hee-ryong, a member of the People’s Power, and Lee Sang-ki, the Korean representative of the World Blockchain Organization (WBO).

Hoon-ki Park, Secretary General of the Busan Blockchain Industry Association, and Hyung-joong Kim, a special professor at the Graduate School of Information Security at Korea University have also shared their insights.

There are numerous foreign blockchain experts who participated in the event too. The panel titled Blockchain Technology, Innovation And Opportunity. The panel is led by Jenny Zheng (ByBit, NFT BD Lead), Anndy Lian (Big One Exchange, Chairman), Davy Goh (Passion VC, CEO), and Joe Lu (Origin Storage, Partner) , and Hwang Byung-sun (Big Bang Angels, CEO).

“As an exchange operator and investor, the main driver for blockchain technology is utility. There are better use cases as we progress. The integrated of Web 3.0, gamefi and NFT help to related with more people and allow new blood into the business. Meme coins are also another trend that cannot ignore. Their communities are the real assets in time to come.” Anndy Lian, Chairman of BigONE Exchange said.

Jenny Zheng, the business development lead of by Bybit NFT marketplace also mentioned in the panel that Korea has always been a very powerful country in the field of entertainment & gaming industries and Bybit is looking for more opportunities to work with good Korean projects in those fields. “NFT is surely a trend that you cannot ignore. More and more companies are getting on. Do not be a late adopter.”

“I am in the fund management business and there is a strong demand and interest in blockchain technology investment. We need to quickly fill up the gaps and start to explain what is blockchain to the traditional players. If we can get them to understand what this technology can do, we will see more funds flowing into the industry.” Davy Goh, CEO of Passion Venture Capital explained.

The global blockchain market is currently about 2,000 trillion won and has achieved explosive growth in blockchain-related industries such as exchanges, blockchain companies (Defi, NFT, Metaverse, etc.). However, the domestic blockchain industry is undergoing regulatory enforcements such as special tax laws and taxation before entering the system, and general investors are not protected by policies that do not have clear guidelines. In order to improve this and help all parties to understand this industry, KBCC will continue to hold international conferences in the future with the aim to aid the development of the blockchain industry.

 

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”.

www.anndy.com
j j j