Legal experts: Meme coin takeover teams may face legal risks
Most meme coins in 2024 are driven by community takeovers, such as Billy and Gigachad, where hundreds of millions of dollars of projects are taken over by early investors after developers withdraw and promote their development.
Legal experts warn that community takeover teams may face legal risks such as misleading marketing, fraudulent trade practices and even criminal misrepresentation. Charlyn Ho, founder of Rikka Law, said that the team needs to clarify the project goals and avoid false propaganda, otherwise they may bear legal liability.
Ignas DeFi posted on X platform, the Ethereum Foundation allocated $30 million in Q4 2023. And in Q3 2023, they allocated $8.9 million. EF allocates grants for education and niche (but cool) products that may not receive a lot of VC support. This may explain why they are reluctant to fund DeFi protocols, as they will receive external funding from VCs anyway. However, there is a lack of comprehensive, transparent reporting of total expenditures. The latest report is for 2021, showing a total expenditure of $48 million for internal expenditures and external grants and bonuses. The largest expenses are:
$21 million for L1 R&D $9.7 million for community development, including grants and education $5.1 million for internal operations (salaries, legal fees, etc.)
So 10% of total expenditures in 2021 were used to pay developer salaries and support the maintenance of EF.
Earlier news, the executive director of the Ethereum Foundation stated that depositing 35,000 ETH with Kraken was part of financial management activities.
On April 30, the EIGEN Foundation's distribution of 2 10% (about 7.77 million EIGEN), Pendle, and some other unresolved (DEFI) contracts on the social platform issued the following clarification:
Users of PENDLE or any UNRSOLVED (DEFI) contract will not be punished during distribution;
· About 10%of the distribution of Season 1, the exact distribution of Phase 2 accounts for 9.28%;
The distribution of Season 1 Phase 2 is not pre -determined, but reflects the total allocation related to the Unresolved (DEFI) contract.
In addition, Season 2 is now open, and the ecological participants after the Snapshot on March 15 will be considered.
EIGEN's initial total supply SEASON 1 specific distribution is as follows:
Season 1: 5%, 83.68 million, of which:
· PHASE 1: accounting for 4.54%, 75.91 million;
· PHASE 2: 0.46%, 7.77 million pieces
The Hong Kong Securities Regulatory Commission approves at least three fund companies to cooperate with the licensed exchange to allow citizens to purchase spot Bitcoin and Ethereum with securities accounts. At present, investors want to buy virtual currencies and need to open a hukou on the virtual currency exchange. Many fund companies have announced that they have been approved by the Hong Kong Securities Regulatory Commission and cooperated with two licensed exchanges on the market to launch virtual asset fund products, that is, citizens can directly use securities accounts to purchase spot Bitcoin and Ethereum Ethereum. No need to open an account on the exchange. Some people in the industry believe that measures can help promote the development of virtual asset transactions and increase taxes.