Coinbase Suspends Meme Coins: Floki, Turbo, and Gigachad Hit Hard in New York

Coinbase Suspends Meme Coins: Suspends Meme Coin Trading in New York – What You Need to Know

Coinbase Suspends Meme Coins – Cryptocurrency exchange Coinbase announced on Wednesday that it would suspend trading of three popular meme coins in New York starting April 14, 2025, at 2 PM ET. The three tokens affected are Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA). While these coins will remain listed on the platform, Coinbase will halt trading for users in the state as part of its regular monitoring of listed assets.

This move by Coinbase follows a routine review of its listings and has already sparked speculation among legal experts. Ariel Givener, founder of GivenerLaw, expressed on X (formerly Twitter) that the decision may be connected to a pending legal case in New York, a possibility that many analysts have found credible.

Market Reaction Remains Unchanged Despite Coinbase’s Move

Despite the trading suspension in New York, the price action of the affected meme coins has remained relatively unaffected. According to CoinGecko data, Floki saw a 3.6% increase, Gigachad rose by 1.1%, and Turbo experienced a 5.4% jump in the past 24 hours. This muted response contrasts with previous instances when listing updates on Coinbase triggered substantial price surges, commonly referred to as the “Coinbase Effect.”

For instance, Floki reached a five-month high after its listing roadmap was revealed by Coinbase in November 2024. Similarly, after Turbo and Gigachad were added to Coinbase’s roadmap in December 2024, both tokens saw significant price jumps of 15% and 37% respectively.

Meme Coins Gain Popularity Amid the Rise of Internet Culture

The rise of meme coins—cryptocurrencies born from internet jokes, memes, and viral cultural references—has captured significant attention in recent years. Platforms like Solana-based Pump.fun, which launched in January 2024, have played a major role in driving this trend. As of now, Pump.fun has created over 8.5 million meme tokens, according to data from Dune Analytics. These tokens have helped fuel the growth of meme coins as an asset class, with many investors viewing them as a high-risk, high-reward investment.

The SEC’s Stance on Meme Coins

The U.S. Securities and Exchange Commission (SEC), under the administration of President Donald Trump, recently clarified its position on meme coins. The SEC stated that meme coins, including the likes of Floki, Turbo, and Gigachad, typically do not qualify as securities under U.S. law. The Commission emphasized that these tokens do not generate income or provide any rights to the profits or assets of a business. As such, meme coins do not fall under the SEC’s regulatory jurisdiction.

This clarification by the SEC has raised questions about the long-term legal and regulatory framework for meme coins. Tracy Jin, the **COO of crypto exchange MEXC, described the rise of meme coins as a form of “modern value creation”. According to Jin, in 2025, meme coins will likely take center stage, surpassing Bitcoin as the flagship of decentralized freedom.

Risks and Opportunities in Meme Coin Investments

Despite the excitement surrounding meme coins, Jin cautioned that investors should approach the market with caution. While meme coins offer significant opportunities for traders and investors worldwide, they come with high trading risks. This caution is warranted as meme coins are often subject to high volatility and can experience sudden price swings, especially when market sentiment changes rapidly.

Investors eager to capitalize on the meme coin boom are advised to increase their research and analytical efforts to navigate this new asset class. The SEC’s stance and the regulatory landscape will likely continue to evolve, potentially shaping the future of meme coin investments.

Meme Coin Launches: A Double-Edged Sword

For traders, the growing market for meme coins provides a new avenue to explore potential profits, but it also brings uncertainty and regulatory risks. Coinbase’s suspension of Floki, Turbo, and Gigachad trading in New York serves as a reminder of the legal complexities surrounding meme coins. These developments underscore the fact that while meme coins have proven popular among traders, they still face significant challenges when it comes to regulation and market acceptance.

In conclusion, as the popularity of meme coins continues to rise, their market behavior remains unpredictable. Investors should remain vigilant and informed about regulatory developments and the potential risks associated with meme coin trading. While the Coinbase Effect has certainly boosted the appeal of these tokens, it is crucial to remember that meme coins can be highly speculative investments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.