Regulation
Will the meme coin craze boom in the second half of 2024? Hong Kong regulators will allow $ETH Spot ETF issuers to stake
TLDR:
In the first half of 2024, the US approved spot Bitcoin ETFs, leading to an altcoin rally that benefited meme coins like $GFOX.
$GFOX has attracted attention as a high-quality alternative to Dogecoin and PEPE.
US approval of spot listings of Ethereum ETFs poses challenges, while analysts suggest similar products could be issued in Hong Kong, where staking is permitted.
Cryptocurrencies are never short of thrills and twists. In the first half of 2024, the US approved spot Bitcoin ETFs, triggering an altcoin rally that lifted major meme coins such as $BOME, $PEPE and Galaxy Fox ($GFOX).
Even if Dogecoin isn’t exciting, smart investors are looking for high-quality alternatives, and $GFOX has been a big beneficiary.
As June approaches, analysts expect the meme coin euphoria to extend into the second half of 2024, this time driven by anticipated Ethereum ETF spot launch and easing of cryptocurrency regulation in Hong Kong.
Meme Coins: $GFOX Leading Rally?
Second CoinMarketCap, the cumulative market capitalization of all meme coins amounts to over $64 billion. If meme coins were a crypto project, they would be the sixth most valuable project, surpassing $XRP and $USDC. Note that, even after the sharp correction in 2022, Dogecoin is the most valuable meme coin.
Even if this is the case, most meme coins, including $BOME, are overly dependent on social media hype. Dogecoin has grown mainly thanks to celebrity support, among which Elon Musk’s support is noteworthy.
However, many investors are looking for alternatives following the sharp correction in cryptocurrency prices in 2022 and changing regulations, which has seen Musk sued for billions. Some increasingly ensure the success of meme coins with utilities like $GFOX.
After listing $GFOX in April, trading began on Uniswap. A few hours after the listing, the dollar $GFOX rose before returning slightly to spot rates. As market participants expect another wave of higher highs in the second half of 2024, traders are optimistic that $GFOX and quality meme coins seeking to disrupt the status quo will likely rise, making new highs.
In the case of GFOX, the launch of the Galaxy Fox play-to-earn (P2E) game in mid-May is a huge vote of confidence, indicating the direction its developers want to take. P2E is already part of the blockchain scene, an industry expected to be worth billions in the coming years.
In the P2E game, Galaxy Fox players who engage will receive rewards through the game. Every time they receive $GFOX, they can choose to wager and earn even more rewards.
However, what stands out in the game is the integration of non-fungible tokens (NFTs). All digital foxes, which are part of the game, are valuable, unique and marketable objects. Depending on the rarity, they can be exchanged for $GFOX or other coins, increasing the player’s income.
For information on $GFOX, visit Galaxyfox.io
Ethereum Spot ETF: United States vs. Hong Kong
The success of $GFOX on Ethereum also comes at a critical time for the smart contract platform. After weeks of doubt, the US SEC has accelerated the approval of spot listings of Ethereum ETFs, much to the community’s surprise.
While the product will likely go live in the third quarter of 2024, when ETH will also find even more regulatory clarity, the regulator’s decision to exclude spot ETF issuers like BlackRock from staking represents a huge obstacle.
Analysts now say Ethereum spot ETFs will be encouraged to issue similar products in Hong Kong as the SFC allows issuers to stake. By allowing staking, it appears that the city-state regulator wants to attract more institutional players, helping to foster a more stable environment that will have a positive impact on the broader ecosystem, including meme coins.
Bottom line: An Ethereum-led bull market in the second half of 2024?
The performance of the cryptocurrency and meme coin markets in the second half of 2024 depends on the developments of Ethereum spot ETFs. Further regulatory clarity, including the US SEC’s statement that ETH is not a security, will be a huge boost for $ETH, altcoins and $GFOX. In the meantime, only time will tell whether the incentive provided by the Hong Kong SFC will attract the big players.
Find out more about $GFOX here:
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