A number of memecoins drawing their likeness from the United States Securities Exchange Commission and its chair, Gary Gensler, have seen a sharp spike in price following the regulator’s lawsuits against crypto exchanges Coinbase and Binance.
One such token is Good Gensler (GENSLR), which rallied more than 260% in the hours following the regulator’s June 6 complaint against Coinbase for allegedly offering unregistered securities.
Good Gensler currently sports a total market capitalization of around $3.2 million. In the last 24 hours, the token has just over $1.25 million in trading volume. According to Etherscan data, Good Gensler was launched on April 19, some five days after the launch of fellow memecoin Pepe (PEPE).
Similarly, another Gensler-derived memecoin with the profanity-laden name Fuck Gary Gensler (FKGARY) also witnessed some upward momentum, rallying more than 530% in the last 48 hours, according to data from decentralized exchange (DEX) screener DEXTools.
Gensler wasn’t the only target for memecoin enthusiasts. Another token featuring the ticker “SEC” — standing for “Stupid Egotistical Cocksuckers” — experienced some major volatility in the wake of the regulator’s recent actions. The SEC token was launched on June 5 and in the following 24 hours rallied a staggering 15,530%.
However, the upswing in value was short-lived. At the time of writing the SEC-themed memecoin has plunged more than 61% from its all-time high.
In May, memecoins stole the spotlight as risk-hungry traders frenzied into hyper-speculative tokens, desperately hunting for rapid, outsized gains. Unfortunately for most memecoin investors, the vast majority of tokens that were popular during the craze have now plummeted in price.
At the time of publication, the price of frog-themed memecoin Pepe and the artificial intelligence-created token Turbo (TURBO) are respectively down 73% and 95% from their all-time highs, according to CoinGecko data.
Due to most lacking underlying fundamentals, memecoins investments are seen as a high-risk endeavor as many have faced extreme volatility and major swings in price.
Many of the tokens mentioned in this article are of small market capitalizations and have low levels of liquidity in their respective liquidity pools rendering them significantly prone to price oscillations.