Memecoin/shitcoin are crypto assets that are suitable for quick pump-dump, often without a whitepaper or real value proposition.
Legal Framework
- Except within the scope of CMB regulation
- KVHS license requirement does not apply
- No investor protection
Typical Risks
- Rug pull: The developer pulls the liquidity, the price is zero
- Honeypot: You can buy but you cannot sell
- Pump-and-dump: Manipulation in Discord/Telegram groups
- Whale dump: The market collapses with the sale of large wallets
Legal Legal Affairs of the Victim Ways
- If the developer/project owner is detected: TCK art.158/1-f fraud with information system
- Legal process is very difficult when anonymous
- Wallet analysis (chainalysis) with legal support
Prevention
- Read the whitepaper
- Check the identities of the developer team (KYC)
- Check if liquidity is locked
- Don't get caught up in the social media hype
- Be skeptical of "it will do 100x" claims
Crypto law expert is recommended