Market update

Cointree Crypto Market Update - November 27th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$142,221 moving +0.51% at the time of writing. Meanwhile, Ethereum ends at AU$5,141 moving +7.85% week-on-week. On the Altcoin side, Solana -1.74%, Cardano +28.42%, and XRP finally picks up with +27.76%.

🗞 What’s happening in the news?

🇬🇧 UK's FCA Targets 2026 for Comprehensive Crypto Regulation

The United Kingdom is gearing up for a major overhaul of its crypto regulatory framework. The Financial Conduct Authority (FCA) announced plans to implement a comprehensive crypto regime by 2026. This move comes in response to the growing adoption of crypto assets in the UK, with ownership increasing by 4% over the past two years. Now, approximately 7 million adults—about 10% of the UK's 68 million population—hold crypto assets.

The FCA's roadmap includes publishing discussion papers on critical topics such as market abuse, stablecoins, staking, trading platforms, and crypto lending. The initial papers on market abuse and disclosures are expected by the end of this year, with further publications slated for early next year.

"We’re committed to working closely with the Government, international partners, industry, and consumers to help us get the future rules right," said Matthew Long, Director of Payments and Digital Assets at the FCA.

This regulatory push aligns with global trends, following the European Union's Markets in Crypto Assets (MiCA) regulations, which are set to go live by the end of this year. The UK's proactive approach signals its intent to provide clarity and support for the burgeoning crypto industry while ensuring consumer protection and market integrity.

🔞 Pump.fun Halts Livestreams Amid Legal Concerns Over Extreme Content

In a dramatic turn of events, Pump.fun, a leading memecoin launchpad, has suspended its livestream feature indefinitely following significant backlash over extreme and inappropriate content. Legal experts warn that the platform could face civil or criminal lawsuits due to the nature of the content broadcasted.

Since its inception in January, Pump.fun has been instrumental in launching over 3.8 million tokens, contributing to Solana's memecoin popularity. However, the platform has come under fire for allowing developers to promote tokens through shocking content, including threats and other harmful material.

Yuriy Brisov, a partner at Digital and Analogue Partners, commented on the situation:

"It's a legitimate reason for a criminal investigation and civil lawsuits."

Pump.fun's co-founder, known as Alon, acknowledged the issues in a public statement:

"Although we strongly stand for free speech and expression, it's our responsibility to ensure that users don't see clearly repulsive or dangerous content and that bad actors aren't given a platform to act as they wish."

The incident has reignited debates about the responsibility of platforms hosting user-generated content. With only 1.2% of tokens launched on Pump.fun reaching the required AU$107,000 (USD$69,000) market cap for listing on decentralised exchanges like Raydium, concerns over scams and rug pulls are mounting.

Mads Eberhardt, Senior Crypto Analyst at Steno Research, expressed his concerns:

"This is not a good look for the industry. The industry would be in a better place if this were not happening simultaneously with growing institutional adoption."

Legal experts warn that token creators engaging in fraudulent activities could face serious charges, including wire fraud and violations of securities laws.

🐶 Chill Guy Meme Coin Rockets 50% Amid Creator's Copyright Battle

In the world of meme coins, the Chill Guy token ($CHILLGUY) has taken the market by storm. Since its launch on 15th November, the Solana-based meme coin has surged by 50% in the last 24 hours alone, trading just shy of AU$0.77 (USD$0.50). The coin's market cap has ballooned from AU$15 million (USD$10 million) to over AU$711 million (USD$461 million), reflecting the relentless appetite for meme coins.

Early investors are reaping massive rewards. In a remarkable turn, one trader transformed a AU$1,550 (USD$1,000) investment into over AU$1.55 million (USD$1 million) within days.

The Chill Guy character, an anthropomorphic brown dog in a grey sweater, blue jeans, and red sneakers, has become a cultural phenomenon, especially among Gen Z audiences on platforms like TikTok.

However, the coin's rapid ascent isn't without controversy. Philip Banks, the creator of the Chill Guy meme, is pushing back against what he calls unauthorized exploitation of his work. Banks took to social media to assert his rights:

"Just putting it out there, Chill Guy has been copyrighted. Like, legally. I'll be issuing takedowns on for-profit related things over the next few days."

While Banks isn't targeting casual use by individuals or brands—"I just ask for credit. Or Xboxes."—he is drawing the line at unauthorised merchandise and unapproved tokens.

This situation highlights the complex intersection of internet culture, intellectual property, and the fast-paced world of crypto. It's not the first time meme coins have skyrocketed in value; recently, the Peanut the Squirrel (PNUT) token reached a AU$1.54 billion (USD$1 billion) market cap within two weeks, and the First Convicted Raccoon (FRED) coin climbed 383% in a single day.