LBank Talks AI Tokens, Meme Coins & EU Crypto Rules
BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative and what their fusion with artificial intelligence (AI) can have on their reach.
LBank also discussed the impact of the four-month-old Markets in Crypto-Assets (MiCA) regulation on its operations across Europe. They described a fundamental change in investor confidence in light of greater regulatory clarity and simplified accessibility.
Have Meme Coin Highs Given Way to Devastating Lows?
In recent years, the meme coin market has largely been characterized by overwhelming highs and devastating lows. The first few months of 2025 have further confirmed the volatile nature of these tokens, to the point that a vocal part of the crypto community believes that their recent lows have marked the end of the meme coin lifecycle.
These claims are not unfounded, especially now that the US President has become a meme coin player. When Trump launched his meme coin in mid-January, TRUMP reached a market capitalization of nearly $8.8 billion, a number never before seen by a meme coin launch.
When insider traders capitalized on the surge to sell off their holdings and retain millions of dollars in gains, retail investors bore the brunt of the massive sell-off, suffering hundreds of thousands of dollars in losses.
“The decline in meme coin market cap since January can be attributed to a combination of market dynamics and sentiment shifts. A key driver was the rapid rise and subsequent crash of the TRUMP token, which drew significant market capital due to its viral appeal but collapsed sharply, eroding investor confidence and triggering a broader risk-off sentiment,” Eric He, Community Angel Officer and Risk Control Adviser at LBank told BeInCrypto.
After similar experiences with the MELANIA token and the LIBRA launch, some of these retail investors realized that meme coins —as unregulated and unpredictable as they are— may not be the best investments.
Is the Meme Coin Frenzy Coming to a Halt?
Given the devastating effects that these episodes have had on the meme coin market, trading has reduced significantly. The crypto community seems to have become saturated with news of pump-and-dump schemes and rug pulls, likely contributing to a halt in the meme coin frenzy.
The total meme coin market capitalization has been free-falling since January’s peak following the presidential token launches. Now, its levels resemble those of September 2024. The greater economic downturn that traditional and crypto markets experienced over the past several weeks has only worsened prospects.
“Meme coins rely heavily on memetic premium, or value driven by cultural relevance and community-driven hype.—and waning retail enthusiasm amid macroeconomic pressures, such as rising interest rates, has reduced momentum. Finally, the exit of “normies” (casual retail investors) during this bearish phase has further drained liquidity and attention, exacerbating the decline,” He explained.
Yet, despite this downward pressure, the market still experiences a high level of activity. It has a $14.5 billion trading volume and a $57 billion market capitalization.
According to the LBank team, the meme coin industry is due for a revival.
LBank’s Belief in the Revival of the Meme Coin Market
Though the decline in meme coin performance has been significant, the LBank team expressed that these circumstances are far from unexpected. Meme coins are inherently tied to community support and social momentum.
The sustained trading volumes and large market capitalization serve as tangible indicators that, even in a downturn, the market is seeing active community engagement and liquidity. Investors still see value in the tokens’ cultural and speculative appeal.
“We see it as a healthy market correction rather than a fundamental shift. Meme coins have always been volatile, but the fact that trading volumes remain high shows continued interest. What’s happening now is not the end of the trend—it’s just a recalibration before the next wave,” Mario Iemma, Head of Spanish Markets at LBank, told BeInCrypto.
In fact, Iemma believes that meme coins will not be dying out anytime soon.
“Meme coins are here to stay. The numbers speak for themselves—there’s deep liquidity and strong community backing. Their resilience shows they’re becoming a permanent part of the ecosystem,” he said.
Iemma also ventured to guess what areas he believed would drive the next meme coin frenzy.
“Meme coins tend to surge when narratives align—whether it’s a viral moment, a celebrity tweet, or a new community movement. We believe the next big catalyst could come from gaming integrations, real-world use cases, or simply the return of retail interest in the next bull cycle,” Iemma added.
The rapidly evolving integration of AI technology has also become a development to look closely after.
The Potential of AI for Token Creation
Several cryptocurrency projects now use artificial intelligence to refine their products and enhance user utility.
AI agents represented the first significant shift in the evolution of the cryptocurrency industry. These autonomous systems proved that they could make decisions and perform tasks independently. This technology enhances intelligence, adaptability, and fairness in financial mechanisms.
Now, developers have unlocked artificial intelligence’s potential on tokens. Systems like Grok have already made news by using AI to automatically and independently design and launch tokens.
These systems are no longer just analyzing or trading tokens; they are actively involved in their creation and deployment without direct human intervention.
For LBank, there’s massive potential in this development.
How AI-Generated Tokens Could Impact the Crypto Industry
According to Iemma and He, AI-generated tokens bring significant opportunities to the crypto industry. Their autonomous nature could particularly impact innovation and efficiency.
“AI-driven token creation could unleash a wave of experimentation, making it possible to quickly build new token economics, governance structures, or hybrid assets. This could lead to new DeFi primitives or community-driven projects,” He said, adding that “Automation simplifies the token creation process, reducing time, cost, and technical barriers for developers and the community. AI can dynamically adjust staking rewards to balance liquidity and demand.”
For Iemma, these advantages demonstrate enormous potential for the future of AI-generated tokens.
“It could start as a niche, but the potential is huge. Just like meme coins started as a joke and became a force, AI tokens could redefine how we think about token creation. It has the potential to remove technical barriers and democratize tokenization. Imagine creators launching tokens without needing to write a single line of code,” he said.
However, with a nascent technology like AI, the LBank team emphasized the need for responsible and thorough deployment for the long-lasting success of AI-generated tokens. This success hinges on two particular factors: accessibility and security.
Security and Accessibility Challenges for AI-Generated Tokens
The concept of security is frequently associated with any emerging technology. Artificial intelligence is no exception, especially in a particularly unregulated industry like crypto.
According to He, AI-generated token projects’ degree of security and transparency will determine their success.
“The speed of AI-driven creation may also exceed the speed of supervision by the community or regulators, resulting in scams or low-quality projectsflooding the market. In addition, the ‘black box’ nature of AI decision-making may erode trust, especially when there is a lack of transparency in token economics or governance logic,” He told BeInCrypto.
Iemma agreed, adding that if AI-generative tokens become widely accessible, this development will also require additional layers of oversight.
“That same accessibility demands better filters, vetting, and AI-based security audits—areas where exchanges like LBank are already investing resources,” he said.
While reflecting on the security risks associated with artificial intelligence and the breaches in consumer trust that meme coins have had on the crypto community, the LBank team also emphasized the need for greater regulation in the industry.
The development of cryptocurrency regulations varies significantly across the globe. Notably, the European Union implemented comprehensive rules almost five months ago, while key markets such as the United States are still establishing adequate frameworks.
MiCA’s Effect on the European Crypto Market
Last December, with the implementation of the Markets in Crypto-Assets (MiCA) regulation, the European Union became the first jurisdiction to establish a comprehensive and unified regulatory framework for crypto-assets across all its member states, marking a significant milestone.
Following this, prominent companies such as Standard Chartered, MoonPay, BitStaete, Crypto.com, and OKX have obtained licenses, granting them access to a substantial European market.
According to the LBank team, MiCA gives users and institutions a trustworthy framework. This development has proven critical for industry growth across the region.
“MiCA has forced firms to become more transparent and compliant, which is a good thing for long-term trust. We’ve seen exchanges accelerate their legal and operational upgrades. For users, it creates a safer, more predictable environment,” Iemma said, adding, “With clearer rules, banks and investment firms are more willing to explore crypto partnerships, custody solutions, and even tokenized assets. Regulation reduces reputational risk, and MiCA is helping bridge that gap.”
However, this experience can be largely attributed to established firms in the industry and investors with access to substantial resources. Other players, however, have struggled to gather the requirements to apply for a MiCA license.
Future Accommodation for Smaller Crypto Businesses
In discussing the impact of MiCA since its enactment last December, He highlighted how different industry players have responded to the landmark regulation. He noted that startups struggle the most to obtain an operational license.
“Startups see MiCA as a gateway to access the European market more confidently, though some are understandably cautious about compliance costs and reporting obligations in early-stage development. Institutional investors, on the other hand, overwhelmingly welcome the regulation—they value predictability and see MiCA as a green light to deploy capital into this sector,” He told BeInCrypto.
When evaluating the cost-effectiveness of an operational license, He’s conclusions make sense.
MiCA is an expensive regulation. It mandates minimum capital requirements based on the crypto services offered. These requirements range from €50,000 for advisory and order-related services to €125,000 for exchange and trading platforms and up to €150,000 for custody services. Businesses must maintain this capital as a financial safeguard.
Beyond minimum capital requirements, companies must factor in government and legal fees, local presence costs, bank setups, and ongoing operational costs. But for prominent exchanges like LBank, the benefits outweigh the costs.
“LBank’s experience underscores that embracing regulation strategically can unlock significant market opportunities,” He concluded.
Future MiCA updates could address the high compliance costs for smaller businesses. Meanwhile, other regions developing their crypto regulations should consider this aspect to avoid creating similar barriers.
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