Max Burwick, a law expert who specializes in cryptography, has been running a small boutique firm since 2021. Burwick, in a video from his midtown Manhattan office, said that he has seen an increase of clients losing money with memecoins.
Burwick has been hearing complaints about memecoins for the last three months. “increased significantly” Over the last few weeks, there have been a number of changes.
“Did you lose money on $FRIEND? You may be entitled to compensation,” Burwick Law posted on social media, after it appeared that the developers of friend.tech, a crypto-social app for friends and family had abandoned the project.
The new wave of clients for memecoin is not expected to slow down.
“I would say we’re gonna see a dramatic increase” Burwick remarked that the firm will be expanding in future.
Every crypto-market cycle has seen speculative investments lead to lawsuits and lost money. This cycle may be no different.
The token launchpad, pump.fun is driving this year’s memecoin flavour. It has made at least $1,000,000 in revenue every day for the last five days. Pump was created to stop rug pulls. Rug pulls are scams where project creators steal funds from a campaign and then leave tokens worthless. The Pump.fun launch does not allow pre-sales, team allocations, or other things that might mislead potential investors.
Even so, celebrities from the B-list might be hesitant to launch memecoins.
Burwick has said that he is feeling “highly optimistic” In his attempts to recover assets from some cases that are pending. This is because “you have a pretty clear establishment of the Howey test for at least 50% of the memecoins that are issued.”
Howey is the test used by courts when determining if tokens can be considered securities. Issuers and investors can both be subject to legal action under securities laws. “statutory sellers” — a label that has been slapped on some crypto folk who promote ill-fated investments. Howey argues that securities include an investment with the expectation of profit based on the work of others. Some crypto enthusiasts take issue with Howey’s statement. “efforts of others” Since blockchains are open and decentralized, anyone can take part in them.
Burwick pointed out that this could look very different if celebrities are involved. He cited a lawsuit against Shaquille o’Neal, in which Big Diesel is accused of being a seller statutory for an NFT failed project.
“I can certainly tell you if it’s a celebrity memecoin and you’re asking, ‘Is this token going to go up from the efforts of others?’ I would think that the answer becomes pretty obvious,” Burwick said.
The infinite memecoin universe we live in today still feels new, but how the courts will respond remains an unanswered question. Burwick thinks that the court’s actions in relation to NFTs may give some indication.
“NFT cases…pretty much laid out exactly the way the courts are going to interpret this,” Burwick said.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
