Dubai Cracks Down on Memecoins: Regulator Warns of Scams & Market Tricks
Dubai’s Virtual Asset Regulatory Authority (VARA) has warned investors about the risks of memecoins. Highlighting their volatility, susceptibility to manipulation, and reliance on hype-driven pricing.
The regulator urged caution, as scams targeting unsuspecting users are on the rise, with studies showing that most memecoins fail within weeks. Research also found that 76% of influencers on X promoted memecoins that are now defunct, and 80% of these tokens lost 70% of their value in a week.
VARA emphasized that memecoin issuers in Dubai must comply with regulations or face enforcement action. Investors are advised to scrutinize advertisements and protect their financial security.
Clever Robot News Desk 17th February 2025
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