The past week has been extremely stormy in the crypto market, with top tokens witnessing significant losses due to regulatory pressures.
The United States Securities and Exchange Commission (SEC) has launched a lawsuit against crypto exchange giants Coinbase & Binance for alleged illegal operation and sale of unregistered securities.
As a result, the market fallout was immediate and profound, with many cryptos diving & seeing over 20% loss in just a few hours. Tokens such as Cardano (ADA), Binance Coin (BNB), and Solana (SOL) suffered heavily, thereby offering themselves at bargain prices.
Despite these market conditions, a few resilient newcomers, such as Wall Street Memes, have achieved significant milestones and continue to rise.
The SEC Crackdown: A Crisis With an Opportunity?
For quite some time, major cryptos showed remarkable stability against market pressures. However, they’ve succumbed to a correction prompted by SEC’s legal action against Coinbase and Binance.
Bitcoin fell toward the $25k level while altcoins like Cardano, Binance Coin, and Solana bore the brunt, dropping by over 20% in just a day.
The SEC lawsuit identifies these tokens, among others, as unregistered securities. If the commission’s assertions are legally upheld, it will impose suffocating regulations on these tokens, which could impact their value.
Last week, SEC Chairman Gary Gensler expressed skepticism about cryptos, implying their lack of fundamental utility.
Moreover, the Federal Reserve’s upcoming decision regarding the next interest rate hike adds to this turmoil. Nonetheless, while intimidating for some, the current price dip may also represent a lucrative opportunity for others.
With tokens like ADA, BNB, and SOL now available at lower prices, the door may be open for investors seeking to leverage this downturn. The question is: can these tokens rebound from this bearish phase?
Cardano
After the SEC lawsuit labeled it as an unregistered security, the ADA token saw a 25% decline on 10th June. However, it rebounded quickly, increasing by 4.5% in the past 24 hours.
While it’s true that the SEC does not possess the unilateral power to label Cardano as a security, the ongoing legal clash has caused a lot of unrest among investors.
But considering the SEC’s ongoing lawsuit with Ripple (XRP), many market analysts are hopeful about Cardano’s prospects. The crypto community has understood from the XRP lawsuit that it is unwise to overreact to the SEC’s actions. Moreover, the likelihood of XRP scoring a victory seems higher than the SEC achieving the same.
On the brighter side, Cardano’s network continues to evolve quickly. The upcoming Hydra upgrade is expected to uplift the token’s value significantly.
Consequently, certain individuals maintain a positive outlook for Cardano’s prospects. For instance, a well-known investor, Mike Alfred, tweeted about buying 1 million ADA tokens.
Binance Coin:
Binance Coin saw an accelerated downtrend following the SEC’s charges against Binance entities. As a result, BNB witnessed multiple bearish engulfing candlesticks on its daily chart, indicating a strong bearish edge in the market. Consequently, BNB plunged to a 6-month low on 12th June.
However, historically, BNB has tended to rebound from the $230 support zone. If the buyers are mobilized at this level, BNB could observe a near-term uptrend.
Amid rising market speculation, Changpeng “CZ” Zhou, the founder of Binance, refuted claims that Binance was liquidating its crypto assets into fiat currency. He affirmed that Binance’s crypto reserves have grown. That said, the platform needs to handle future legal challenges to regain investors’ trust effectively.
Solana: Provides an Attractive Entry Point at a Lower Price
Solana (SOL) has emerged as one of the unique crypto projects, aiming to solve scalability issues without compromising decentralization. Fueled by an industry-leading builders community, the project is committed to creating a decentralized future.
The SEC lawsuit against Binance and Coinbase also touched Solana, leading to its depreciation. Despite this adversity, the Solana Foundation, a non-profit entity based in Switzerland, publicly disagreed with the SEC’s characterization of SOL as a security.
In fact, the community is considering the idea of forking Solana, mirroring what Ethereum did after the DAO hack in 2016.
The SEC’s action led to SOL hitting a 5-month low on 10th June. This dip also has allowed investors to procure SOL at a relatively lower price.
The $14-$15 range has historically offered high liquidity levels for SOL and, as a result, has been a robust support zone. Thus, any potential change in sentiment in favor of buyers can trigger a sharp near-term uptrend.
Wall Street Memes
While major cryptos are struggling amidst market uncertainty, Wall Street Memes has entered the meme coin scene with its native token, $WSM. The platform is known for its successful Ethereum-based NFT series, Wall St Bulls, which famously sold out within half an hour of launch.
Wall Street Memes has already secured over $6.2 million in funding in just over two weeks, showcasing its community support. At press time, the token presale offers $WSM for $0.0283.
Taking cues from 2021’s GameStop and AMC surges, $WSM intends to ride this wave of interest in meme coins.
The project has an impressive track record, reinforced by a robust online community exceeding a million followers across multiple social media platforms.
This sizable audience, coupled with the notable engagement of high-profile individuals such as Elon Musk, adds to the charm and credibility of the $WSM token. As a result, the $WSM token could be listed on some of the top exchanges like Binance in the coming weeks.
Prudently, they’ve limited the token supply to two billion. The distribution of these tokens is fully community-centric. It involves 50% in the presale, the remainder divided between exchange liquidity and community rewards.
Their history in the NFT market, solid community backing, and strategic tokenomics have some analysts forecasting $WSM as the next 10x meme coin.
Visit Wall Street Memes Presale
AiDoge
Another meme coin traders are backing amid the SEC market crash is AiDoge ($AI). It stands out by integrating two booming niches – meme coins and artificial intelligence.
AiDoge’s token presale hit its ambitious $14.9 million hard cap in a just month, creating anticipation for its upcoming IEO on June 19th.
This project allows users to craft memes using AI and text prompts, with the best ones rewarded in $AI tokens. These AI-crafted memes can be shared, simultaneously growing the project and rewarding creators. Furthermore, AiDoge facilitates token staking for added rewards.
Although the team remains anonymous, like other meme projects such as Dogecoin and Shiba Inu, it instills confidence via its 10-year vesting period on team tokens, signifying a long-term commitment. Also, an ongoing audit from security firm Certik reaffirms the project’s security.
AiDoge’s platform offers a unique ecosystem. By staking $AI tokens, users gain credits, voting rights for development decisions, and access to premium features like special contests and platform enhancements.
It also plans to launch a public wall and a voting mechanism to rate memes and reward top performers, slated for Q1 2024 release.
Even though the presale has concluded, investors have a final opportunity to buy AiDoge at its listing rate of $0.0000336.