What Are Internet Capital Markets? Why Companies Are Launching Meme Coins
Startups and established companies are increasingly launching meme coins as part of a trend called "internet capital markets," which allows digital-native fundraising. Companies like Vine and JellyJelly have seen significant market capitalizations from these tokens, often driven by speculation rather than utility. The trend began with platforms like Pump.fun and has been revitalized by others like Believe. Companies may use meme coins for capital raising or marketing, with some projects lacking serious long-term viability. The approach mirrors the ICO boom of 2017, raising concerns about regulatory scrutiny from the SEC. Legal guidance is advised for companies to determine if their tokens could be classified as investment contracts. Recent SEC statements suggest a more lenient stance on meme coins, emphasizing the distinction between capital raises and community-driven speculation.
