Memecoins, initially viewed as community-driven digital assets, are increasingly linked to scams and exploitation of retail investors, raising regulatory concerns. The collapse of the Libra (LIBRA) token, endorsed by Argentine President Javier Milei, highlighted issues within the sector after insiders withdrew $107 million, causing a 94% price drop. Anastasija Plotnikova, CEO of Fideum, noted the shift from social experiments to environments dominated by value extraction. Insider activities and pump-and-dump schemes have overtaken the original collectible nature of memecoins. Investors must differentiate between genuine collectibles and fraudulent activities like rug pulls, which are illegal. Despite recent scandals, Dmitrij Radin of Zekret and Fideum suggests these events may not significantly impact long-term cryptocurrency regulation, as legislation is designed with a broader perspective. Regulatory responses may vary, with tokens like Official Trump (TRUMP) and Official Melania Meme (MELANIA) viewed differently from Libra. — news from Cointelegraph