- The New York State Department of Financial Services has issued a warning about Meme Coins, highlighting the high risks of coins created on unlicensed platforms.
- Meme Coins are highly volatile and can be used in fraudulent schemes like 'pump and dump', according to New York.
- Additionally, New York noted that even Meme Coins issued on regulated platforms can experience price drops in the short term.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
The New York State Department of Financial Services (NYDFS) has issued a 'Meme Coin Warning'.
According to industry sources on the 24th, the New York State Department of Financial Services recently announced on its website that it is "closely monitoring cryptocurrencies known as 'Meme Coins'" and stated that "the platforms creating these coins are unlicensed and do not adhere to New York's stringent cryptocurrency standards established for consumer protection." It further noted that "cryptocurrencies based on sentiment, such as Meme Coins, are vulnerable to price volatility," and advised "New York residents to be aware that these coins carry exceptional risks."
The New York State Department of Financial Services also emphasized the fraud risks associated with Meme Coins. The department warned that "Meme Coins may be part of fraudulent schemes like 'pump and dump' or 'rug pull', where prices are artificially inflated and then crashed," and advised caution regarding the surge of Meme Coins created on unlicensed platforms without professional technical knowledge. Additionally, it noted that "even cryptocurrencies issued on regulated platforms can have significant price volatility and unpredictability, with potential for substantial price drops in the short term."
There is also speculation that the New York State Department of Financial Services may have had the Meme Coin Official Trump (TRUMP) in mind. The Meme Coins Official Trump and Melania (MELANIA), recently launched by the family of former U.S. President Donald Trump, have drawn attention due to their high volatility.

JOON HYOUNG LEE

gilson@bloomingbit.ioCrypto JournalistPiCK News
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