“I don’t think it’s so totally different than the way things work in traditional finance,” he said. “Big Wall Street funds push most of the volume.”
Still, a lack of regulation and official market surveillance leaves meme coins like Shiba Inu vulnerable to suspicion even as its surge in price brings it to a broader, mainstream audience. While it’s available for trading on Coinbase’s exchange, others such as Kraken and Robinhood have so far resisted—despite vocal lobbying from their clients.
“Legitimate crypto has a solid underlying economic case, its value does not depend heavily on who holds how much of it,” adds Brown. “But for crypto with no underlying economics—whose value is determined only by speculation—concentrated ownership suggests a rigged game.”
This article was provided by Bloomberg News.