Third time is a charm? Ben.eth launches new Memecoin, $LOYAL

May is made with twists. From the rise of $PEPE that brought crypto and NFT’s newfound excitement to an unprecedented battle of anonymous creator hopeexist, it has become difficult for Web3 to focus on anything other than memecoins and scandals.

And we’re not quite out of the woods yet. Thanks to Ben eth, the denizens of the metaverse may once again become controversial. After making quite an impression with his $BEN and $PSYOP memecoins, the pseudonymous collector has returned to further expand his journey to infamy with a new token offering: $LOYAL.

What is $LOYAL?

$LOYAL is the third (and maybe last?) memecoin in the Ben.eth saga. While $BEN was created simply to be a new, viral memecoin, and $PSYOP was launched as the sequel that would also bring an unspecified utility, $LOYAL is supposedly something else entirely.

If by tweet by the controversial crypto content creator and $BEN ecosystem leader, Bitboy, $LOYAL will be “the token of a new DEX/Memecoin Launchpad called PsyDex.”

“Twenty-five percent of LP winnings on $LOYAL are broadcasted to $BEN coin holders each week. Twenty-five percent of LP profits on $LOYAL will go towards funding our crypto adoption initiatives with $BEN,” said Bitboy in a thread after his first tweet.

“The Memecoin Launchpad will enable crowdfunding that automatically locks in a percentage for liquidity. It is carpet resistant. There are many more things and details to work out, but this is weeks in development by the top notch development team.

Given the delay and subsequent lackluster response to $PSYOP’s launch, it’s anyone’s guess whether what Bitboy is saying is true or if the efforts fail. But at the time of writing it only had $LOYAL contract just released.

But what could possibly even be more Interesting about the launch of $LOYAL (even more so than tokenomics) is the new layer of controversy that it, and Ben.eth’s earlier comments, have inspired.

Copycats galore

While there is much to be said about $LOYAL and Ben.eth’s previous two coins, it is perhaps his infamous tweet, rather than token effort, that has had the biggest impact on Web3 culture to date. Originally published as a statement to encourage potential investors to participate in a $PSYOP pre-sale, it has since become both a meme format and a call to action for numerous other influencers.

While the above tweet from Ben.eth has since been deleted, several versions of his original vernacular have been re-released in Web3. Surprisingly, some of these co-optation efforts have actually become major breadwinners for users.

Particularly pseudonymous collector Pauly received over $1.2 million (and counting) simply by asking his followers to send ETH to his YouGetNothing.eth wallet while don’t expect anything in return. But not everyone has been successful and most creators and collectors in Web3 seem to be against such ventures for obvious reasons.

Instead of sending eth to random addresses only to get nothing, why not look through the profiles of artists who haven’t had a sale in a while and send eth in exchange for art and good karma.

— BETTY (@betty_nft) May 30, 2023

Ben.eth’s tweet isn’t the only thing inspiring malicious copycats. A slew of new memecoins have popped up, aiming to mimic the influencer’s speech and persona in hopes of achieving similar success. Two such efforts that have been doing the rounds are $DAVE and $FINALE.

Word soon spread that $DAVE was under the same management as $BEN nipped in the bud by Bitboy, the story around $FINALE is a bit more complex. Because at face value, and thanks to Ben.eth’s not canceling the currencyfeels the token is very much on brand with both $BEN and $PSYOP – and has gained some traction in response.

Furthermore, the Finale Token has been launched on May 29, continues to refer to both $BEN and $PSYOP on social media as marketing tactics. While the coin seemingly got a green pass from Ben.eth, Bitboy has stood firm that though his ancestors may loosely connected with the $BEN ecosystem, it is not an accepted part of his or Ben.eth’s ongoing efforts.

The legality of this whole spectacle

As the NFT community continues to make their own judgments about what Ben.eth has created, ultimately the legality of his actions will be what matters most. Ben.eth may seem uninterested in the potential ramifications of his memecoin empire. But with a lawyer Mike Kanovitz considering submitting an application class action lawsuit to the influencer, it may only be a matter of time before Web3 sees the true magnitude of this complex situation.

In the opinion of Andrew Rossow – a lawyer and journalist who focuses on fintech and intellectual property law – while it is far too early to say what the Ben.eth saga will mean for memecoins, the legal implications should be of interest to everyone at Web3.

“I think anyone who is participating in the space and taking the position of offering another party or group of people an opportunity to invest should take this very seriously,” Rossow said in an interview with nft now. “The reason for this is that when you ask someone to invest their money in an effort, an enterprise, an initiative, you are taking on an entirely different role and responsibility where we are just now starting to peel back the layers and hope for more clarity on the regulations. .”

Rossow made it clear that the Ben.eth situation is far too fresh to really dissect, but that the ongoing Ripple vs. SEC lawsuit and further SEC regulatory considerations will play a big part in if and when memecoin makers (like Ben. eth) or even general founders of NFT projects should be concerned.

“The SEC is going to have to get involved whether we like it or not. It’s just a matter of if you want to set foot in these waters you have to be realistic,” said Rossow. “If people are willing to ask others for their money to invest in something […] they need to be open to the potential of probes and SEC talks.

While Rossow digressed that there should be a greater distinction between performance art for the sake of social commentary versus for the sake of bringing in investors, he noted that court-established precedent brings one of many controversies in the NFT space. (like memecoins) would give Web3 a starting point for creating a symbiotic relationship with regulators.

For now, as the Ben.eth story continues to be written, the only thing that memecoin traders, NFT collectors and enthusiasts can do on the sidelines seems to be waiting.