The crypto year in review 2021: Memecoins and Ripple

The year is drawing to a close and we look back. Part 1: How the Gamestop Movement Spilled into the Crypto Verse and Ripple Fought the SEC.

Can’t stop, won’t stop, Gamestop: Vom Aktien-Hype in den Krypto-Space

While the Bitcoin price rose to new heights at the beginning of the year, a storm was brewing elsewhere that should shake the investment world a little bit. We’re talking about the Reddit forum / r / wallstreetbets and its self-proclaimed investment monkeys (Apes)who had set themselves nothing less than to bring down Wall Street. Or at least shake it up a bit – and fill your pockets in the process.

By concertedly buying up GME shares, they drove the price so high that they triggered short sales of hedge funds. This was followed by a short squeeze, which ultimately led to Melvin Capital, one of the hedge funds that had bet against the Gamestop share, going bankrupt. Within a year, the GME rate had risen from just under 3 US dollars to 428.85 on January 28, 2021 as a result of this promotion. An increase of over 15,000 percent.

Much wow: Memecoins like the Doge-Coin experienced an overheated rally in 2021.

The David versus Goliath mentality also caught on in the crypto space. This is how the investor community was formed /r/satoshistreetbets out, which was dedicated to the crypto market. The hype about Memecoins really took off after the Gamestop campaigns. Not only did the Dogecoin experience an impressive rally, but also encouraged the crypto space to lift new memecoin projects from the blockchain. In the middle of the year, the Shiba-Inu-Coin attracted more attention.

But whether it is Shiba Inu, Doge or one of the numerous other Memecoins: Ultimately, they are all purely speculative and damage the image of the crypto space. BTC-ECHO editor David Scheider explains why this is so in the podcast. Just listen to it.

The Neverending Story: Ripple Vs SEC

It’s been a tough year for Ripple. Because the US Securities and Exchange Commission (SEC) had sparked a legal dispute at the end of 2020 that should drag on through the entire year 2021. The stock exchange supervisory authority put the fintech company under the control of trading in unregistered securities. The worrying prospect of fines amounting to 1.3 billion US dollars sent the XRP course on a downward slide as a result. The lawsuit also had other consequences. About by Binance stopped XRP trading without further ado. At the latest after the asset manager Grayscale had also discontinued the XRP fund, it was clear: This will be a difficult year for the Californian fintech.

Ripple didn’t want the butter to be taken off the bread so quickly, however. Rather, the company went on the offensive in March. In a letter to the US federal judge, it said that Ripple would consider the action of the stock exchange regulator to be a “regulatory abuse”. The SEC quickly thwarted Ripple’s rebellion.

At the end of November, Ripple struck again, but this time much more moderately. A document on possible regulation benevolently states:

The US financial markets are considered first class. This is partly due to the existing regulatory framework under which they operate. We believe that if this framework is successfully adapted to some of the unique characteristics of cryptocurrencies, it can provide the clarity that innovators seek. And consumers get the market protection they deserve.

With this in mind, Ripple called for “innovation sandboxes” to be promoted in order not to unnecessarily slow down developments in the crypto sector. A final decision is still pending.

We want to thank the writer of this write-up for this outstanding content

The crypto year in review 2021: Memecoins and Ripple

Dispensary Business News