The trading of cryptocurrencies can differ from one region to the next. For example, gimmick tokens and Non-Fungible Tokens are no longer viable in Thailand following the recent SEC decision. It is interesting to see regulators crackdown on assets that have no objective or substance.
Thai SEC Dislikes NFTs And Meme Coins
It is true there are far too many different cryptocurrencies on the market today. The majority of these projects have no real value, nor is there a long-term plan of action. Even so, one can often trade these semi-useless assets across exchanges and other platforms. If this industry wants to be taken seriously by the mainstream, getting rid of all the “junk” may prove essential.
The Thai SEC acknowledges the potential dangers of gimmick tokens, meme coins, and even Non-Fungible Tokens. Despite the sheer value attributed to these different segments, there are numerous financial risks to consider. For the Thai Securities and Exchange Commission, banning the trading of such assets is the next logical step. A remarkable decision, although a defendable one, for the most part.
While it is understandable the ban pertains to gimmick coins and meme currencies, the addition of Non-Fungible Tokens seems unusual. It is one of the hottest trends in the blockchain space today. However, for every legitimate project, there is at least one that might raise a lot of questions. Distinguishing between genuine and potentially harmful projects is very difficult, as all NFTs are speculative in value by default.
On the meme currency front, this ban will likely extend to Dogecoin. Despite being a top cryptocurrency with a substantial market cap, Dogecoin has no long-term value or development plan. Moreover, it is one of the most speculative crypto assets on the market today, part of which can be blamed on Elon Musk. Speculative tokens are not necessarily contributing to the broader industry, and this example set by the Thai SEC may trigger a cascading effect globally.
No NFTs In Thailand
The time of this news is rather interesting for several reasons. The biggest reason is how Jay Mart aimed to launch the first Thai NFTs linked to local celebrities and stars. A worthwhile initiative, yet it may never happen in the end. There is little purpose in owning Non-Fungible Tokens unless one can freely convert them to value in the future. With such a trading ban in place, that becomes a lot more difficult.
A second reason is the ongoing crypto market slump. Following some news out of China – which isn’t really news at all – the markets have faced setback after setback. Unfortunately, that negative momentum is still in place today, with several currencies losing over 20% in value this past week alone. Turning this momentum around remains challenging for the foreseeable future.
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