Polygon’s Sandeep Nailwal warns memecoin rug pulls like QUANT may invite regulatory crackdown
Polygon’s Sandeep Nailwal warns memecoin rug pulls worship QUANT might per chance furthermore invite regulatory crackdown Polygon’s Sandeep Nailwal warns memecoin rug pulls worship QUANT might per chance furthermore invite regulatory crackdown
Industry leaders dread that recent scams might per chance trigger stricter laws that will perhaps reshape the crypto anecdote.
Quilt art/illustration by approach of CryptoSlate. Image contains blended declare material which would per chance furthermore contain AI-generated declare material.
Sandeep Nailwal, the Ethereum layer-2 network Polygon co-founder, has voiced concerns that the rising pattern of memecoin scams might per chance appeal to regulatory scrutiny.
Nailwal highlighted these dangers in a Nov. 21 put up on X, pointing to recent incidents as capability triggers for authorities intervention in the crypto dwelling.
QUANT controversy
Nailwal’s remarks had been brought on by a scandal intriguing Gen Z Quant (QUANT), a memecoin launched on the Solana-primarily based platform Pump.relaxing.
On Nov. 20, blockchain analysis platform Lookonchain reported that a 13-one year-extinct created the token in the end of a are residing trudge occasion. The memecoin’s rate surged over 260% within minutes sooner than crashing when the boy sold all his holdings, profiting $30,000.
The teenager’s actions didn’t conclude there. Rapidly after the QUANT rug pull, he deployed two more tokensâLUCY and SORRYâand repeated the rip-off, incomes an additional $24,000. These incidents fueled outrage, with affected traders accusing the boy of abusing Pump.relaxing for private attach.
The backlash escalated when the boy taunted traders on-line. Some angry traders retaliated by pumping the imprint after he sold, doxxing his family, and revealing personal tiny print such as addresses and social media profiles. This ended in additional chaos, as new tokens themed around his relatives started performing on Pump.relaxing, turning the difficulty darker.
Market implications
Industry leaders worship Nailwal warned that such incidents tarnish the crypto alternate’s image and need to suggested stricter laws. He approved that the inability of oversight in the memecoin sector fuels speculative mania and exposes traders to critical dangers.
Nailwal talked about:
“Issues worship this might increasingly probably perhaps furthermore invite regulatory intervention on the memecoin mania. That will result in tectonic shift in the most modern alternate anecdote. This paints a unsightly image for crypto amongst the loads.”
The continuing crypto market rally has fueled a wave of memecoin launches, in overall tied to trending matters or people. Many of those tokens lack utility or substantial neighborhood backing and are inclined to pump-and-dump schemes. Merchants who enter these markets gradual in overall endure critical losses.
Mentioned in this article
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's capability. He imparts insights on a form of matters worship DeFi, hacks, mining and culture, underlining transformative vitality.
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Ethereum is a decentralized, starting up-source blockchain platform that enables the creation of sparkling contracts and decentralized applications (DApps).
Polygon, a prominent layer 2 scaling solution on Ethereum, has emerged as a multifaceted and scalable platform, bettering the Ethereum ecosystem’s capabilities.
Solana is a excessive-efficiency blockchain platform that utilizes a varied consensus algorithm known as “Proof of Historical previous” to attach hastily transaction speeds and low fees.
Pump.Fun is a platform that enables customers to make and alternate memecoins without instruct, capitalizing on the novelty and neighborhood-pushed enchantment of those tokens.
Sandeep Nailwal is the co-founder of the Polygon Community.
Source credit : cryptoslate.com
