The meme coin trend on the XRP Ledger (XRPL) is gaining traction, largely fueled by Magnetic X’s new platform, Memepad, which allows users to easily create and launch new tokens. While this rapid growth draws investor interest, concerns are also mounting over potential scams and the possibility of regulatory pressures from the SEC. Additionally, the global IVAN initiative aims to counter illicit financing in the virtual asset space, adding another layer to the complex regulatory landscape.
The Rise of Memepad and Meme Coins on XRPL
In recent weeks, the XRPL has seen notable activity in the meme coin market. Memepad, a launch platform developed by Magnetic X, enables individuals within the XRPL ecosystem to create and deploy tokens effortlessly. This platform fosters innovation, contributing to a surge in new projects. Since Memepad’s launch, over 70 meme coins have been introduced, with VADER standing out as a prominent example. Currently, VADER has locked a total value (TVL) of 190,000 XRP and boasts more than 507 holders, offering an impressive annual percentage rate (APR) of 668% in yield farming.
In just one day, 70 memcoins were released on our mempad, and this is just the beginning.
These are the stats of the first released memcoin, VADER:
TVL: 190k XRP
Number of holders: 507
APR in farming: 668%
Trade: https://t.co/pS5Jsi6bT8Today we will release small updates on… https://t.co/kM4JljLSa6 pic.twitter.com/KO0Qo9ib6V
— Magnetic X (@MagneticXRPL) October 21, 2024
One social media user noted the rapid growth of Memepad, saying, “Memepad went live just a week ago, and already, several coins have achieved multi-million dollar market caps. Many of these tokens show promising charts.” This growth underscores the platform’s potential impact on the XRPL ecosystem.
Regulatory Concerns and Potential Risks
While the meme coin trend has taken off, some users are concerned about potential fraud risks. Many projects are created without licensing, and some are suspected of short-term price manipulation schemes that could compromise market integrity. One user speculated about the SEC’s stance on XRPL meme coins, stating, “The SEC doesn’t favor Ripple. Do you think they’ll allow all XRPL meme coins to run unchecked? No, they’ll seize control over all XRPL token creators.”
A New Security Measure
Coinciding with these developments, the Illegal Virtual Asset Notification (IVAN) initiative was launched to provide global security measures against illicit financial activities in the virtual asset space. This initiative aims to detect and respond to illegal transactions in real-time, collaborating with governments, law enforcement, and leading industry partners to minimize risks associated with illicit financing. Notably, Circle is expected to play a pivotal role in IVAN’s efforts to address illegal financial activities within the crypto sector.
As the meme coin phenomenon and platforms like Memepad offer new opportunities, they also bring regulatory risks for XRPL users. Turkish NY Radio will continue to monitor whether initiatives like IVAN can enhance security and trust in the evolving crypto market landscape.
