The SEC just made a major announcement about meme coins—and we’re breaking it down. Are meme coins just gambling, or are they actual investments? What does this mean for investor protections, and where do we draw the line between speculation and securities?
Then, we shift gears into crowdfunding trends, analyzing how “testing the waters” impacts funding success. Do investors follow through on their pledges? Why do some campaigns exceed their reservations, while others fail to hit their goals? Our data experts dive into the numbers across Wefunder and StartEngine to see which platform has the best conversion rates.
What did the SEC decide about meme coins?
The SEC ruled that meme coins are NOT securities, meaning they won’t be regulated under traditional securities laws. While this provides clarity, it also raises concerns about fraud and investor protections in the crypto space.
Why does this matter for investors?
Without SEC oversight, meme coins remain highly speculative assets—similar to gambling. This ruling creates a clear distinction between securities and speculative tokens, which could benefit regulated investments like equity crowdfunding.
What is “Testing the Waters” in crowdfunding?
“Testing the Waters” allows startups to gauge investor interest before officially launching a campaign. Investors can reserve investments, but they must reconfirm later when the campaign goes live.
Do investors actually follow through on their pledges?
The data shows mixed results—on Wefunder, many campaigns end up raising less than their reservations, while StartEngine campaigns often raise more than initially pledged. The way each platform handles reconfirmations may impact these trends.
What does this mean for founders launching a raise?
Founders should leverage Testing the Waters to measure demand before spending thousands on legal and marketing costs. However, they must also plan for potential investor drop-off once the campaign goes live.
