Coinbase Freezes Trading for Three Popular Memecoins in New York

Coinbase Suspends Trading of Popular Meme Coins in New York

Coinbase has decided to halt trading for three widely traded meme coins—Floki (FLOKI), Turbo (TURBO), and Gigachad (GIGA)—in New York, effective from 14 April 2025, at 2 PM ET.

While the tokens will remain listed on the platform, the suspension will only impact users based in the state, following a routine review of listed assets.

Reasons for the Suspension Remain Unclear

Although Coinbase has not explicitly detailed the reasons for suspending the tokens in New York, there is speculation about the regulatory challenges the state poses.

New York is known for having strict crypto regulations, which could be a factor in the decision.

Legal risks, compliance concerns, or liquidity issues are also potential contributors, but the exchange has not confirmed this.

Ariel Givener, founder of GivenerLaw, commented on X,

“I’d put a lot of money on this being tied to a pending legal case in NY.”

This raises questions about whether the suspension is a preemptive move in response to legal pressure or regulatory changes in the state.

Market Reactions Remain Muted Despite the News

Despite the announcement, the market response has been relatively calm.

In the 24 hours following the news, Floki experienced a modest 3.6% gain, Gigachad saw a slight 1.1% increase, and Turbo surged by 5.4%, according to data from CoinGecko.

These figures suggest that the news has not caused a significant downturn in the price of these tokens.

However, this news does raise concerns about the future of these meme coins in the U.S. market, particularly in light of Coinbase’s influence on the crypto market.

Tokens that are added to Coinbase’s listing roadmap or platform often see a boost in value—a trend referred to as the “Coinbase Effect.”

This phenomenon was evident when Floki saw a five-month high after its roadmap announcement in November 2024.

Similarly, Turbo and Giga both experienced significant price hikes when they were included in Coinbase’s listings in December 2024.

Meme Coins in the Spotlight Amid Growing Popularity

Meme coins, which are cryptocurrencies based on internet memes or cultural references, have become increasingly popular over the past few years.

A driving force behind this trend is Pump.fun, a Solana-based meme coin launchpad that, since its debut in January 2024, has facilitated the creation of over 8.5 million meme tokens, according to Dune Analytics.

Tracy Jin, COO of crypto exchange MEXC, described meme coins as “modern value creation.”

She highlighted that, in 2025, the symbol of decentralised freedom is no longer just Bitcoin, but an entire category of cryptocurrencies: meme coins.

Jin further cautioned, “Optimism should be met with a dose of caution,” given the new risks and uncertainties that come with the territory.

Regulatory Landscape Shaping the Future of Meme Coins

The regulatory landscape surrounding meme coins is evolving, and the U.S. Securities and Exchange Commission (SEC) has recently clarified its stance on such tokens.

Under the Trump administration, the SEC stated that meme coins generally do not qualify as securities, as they do not generate yields or confer rights to future profits or assets.

This suggests that meme coins, which often lack the underlying utility or business models of more traditional cryptocurrencies, are not under the jurisdiction of the SEC.

Despite this, experts like Jin warn that meme coins present significant risks for traders.

The market’s volatility and the lack of long-term value for many of these tokens make them a high-risk investment.

While there are opportunities, the cautionary advice remains clear—investors must conduct thorough research before committing to any meme coin investment.