Meme coins surging on the theme of SEC and Gary Gensler, is there still profit potential in the current meme coin market?

On 6/6, following the announcement of the U.S. Securities and Exchange Commission (SEC) suing the cryptocurrency exchange Binance, the next day they swiftly filed a lawsuit against the U.S. listed exchange Coinbase as well, causing its stock price to drop by over 30% in a single day. Interestingly, since news of the lawsuits against the two companies emerged, Memecoins related to Gary Gensler and the SEC have seen a significant increase in value.

SEC-Related Meme Coins Double in Frenzied Surge

In May of this year, it was the season for meme coins. Led by $PEPE, which skyrocketed from a five-digit market value to $33 million in just two weeks, it led to a surge in tokens such as $TURBO. Tokens with highly speculative nature emerged in the thousands like mushrooms after rain, and the rapid and massive profit model of meme coins at that time became the focus of attention.

According to data from coinmarketcap, the token Good Gensler (GENSLER) created specifically for SEC Chairman reached its peak price in May after being created in April, with trading volume reaching as high as $430 million and a current market value of approximately $3.69 million.

Since news of Binance being sued was released on June 6th, $GENSLER has been on a continuous rise, with an increase of over 160% in three days.

Another token, slightly more explicit, as an embodiment of freedom of speech, the Fuck Gary Gensler (FKGARY) token is also not to be outdone. It has surged over 170% in three days, with a peak increase of 550%. However, its 24-hour trading volume is mediocre, at only about $100,000, and its current market value is only $550,000.

It's Nearly Impossible to Profit from Meme Coins Now

Coindesk reports that according to research by SingularityDAO, over 80% of $PEPE investors sold for profit in the first week of token issuance.

The report also indicates that early profit-taking has depleted a significant amount of the token's liquidity, causing most investors to be unable to realize true profits created by liquidity. It was also found that a few large investors known as "whales" hold about 25% of PEPE, while other large investors hold 46% of the current circulating supply.

Earlier, some analysts had raised warnings about the risks and liquidity issues of PEPE and most tokens being controlled by a few, emphasizing the absence of a large number of retail investors, which would cause price trends to be determined by a few investors, creating a higher-risk market environment.

This also indicates that most meme coin investors have already missed the opportunity to make significant profits.

The researcher Rafe Tariq, responsible for the report, pointed out: