The Role of Memecoins in Market Volatility – LIAN Group
Fiorenzo Manganiello, co-founder and managing partner of LIAN Group, provided his analysis of Washington’s recent pro-crypto initiatives. He also discussed how the surge in memecoin popularity is affecting the market’s predictability. The growing demand for these tokens, according to Manganiello, contributes to the increased unpredictability.
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Creating an Environment That Nurtures Digital Assets
On the subject of the new SEC target group led by Commissioner Hester Peirce, Manganiello remarked:
We have now a very pragmatic and business-friendly regulation and environment for crypto. And I think this is really a key word that we should consider. The big, most important thing is obviously to remove the barrier to entry, which obviously Gary Gensler has increased so much with regulation and with, you know, such a destructive approach.
Check out: “Crypto Mom” Hester Peirce to Lead New SEC Crypto Task Force
He highlighted how the SEC’s previous actions led to a shift in crypto operations away from the U.S. and expressed hope that the new leadership would concentrate on encouraging industry growth and ensuring user protection.
Source: YouTube
Related: Crypto Win: SEC Overturns SAB 121
How Meme Coins Affect the Crypto Market
The discussion turned to meme coins, which gained significant traction following the inauguration of President Trump. Manganiello commented:
I think memecoins—it’s kind of fantastic because, if you think about it, Gensler, I think, has been one of the key figures for the kind of ‘Gensler Meme Factory.
I think, unfortunately, this goes a little bit away and against what we’ve seen. We have been trying over the last 12 months to build an institutional infrastructure for crypto … those memecoins might actually create volatility in the market and … might kind of make us believe that we are going backward.
Source: YouTube
He also highlighted that a more favorable regulatory landscape could encourage financial institutions and asset managers to continue to build services around well-established digital assets..
Of interest: Trump Meme Coins — What’s Got Buterin and Warren Concerned?
President Trump’s Executive Order on a National Crypto Reserve
On the topic of President Trump’s recent executive order to create a national crypto reserve, Manganiello was cautiously optimistic.
No, I think that’s definitely something that will happen. It’s true that it’s more complicated than we initially thought, but we are certainly expecting and see this event taking place within the next 12 months.
While the final decision rests on Congressional approval, he expects noticeable changes to occur in the near term.
The Urgency of Regulatory Clarity
Manganiello reiterated that clear regulatory frameworks are the most important issue facing the cryptocurrency industry.
I think one of the key pillars for crypto regulation in the coming year is the definition of the asset type. We really need to establish a clear understanding of what token utility is.
He recommended the creation of a “regulatory sandbox,” where startups can work with regulatory bodies and test their products without fearing abrupt legal setbacks.
According to the LIAN Group expert, the US is undergoing positive transformations concerning cryptocurrencies. Reducing barriers, defining token status with clarity, and encouraging innovation may help attract global crypto projects to establish their base in the US.
By finding a balance between welcoming business regulations and managing the frenzy around meme coins, the country could draw in new investments and expertise, driving continued growth in the crypto space.
The Coinomist Profile — Fiorenzo Manganiello, Co-founder & Managing Partner at LIAN Group
Academic Credentials: Degree in Financial Economics from LUISS Business School; further studies at the London School of Economics.
Professional Expertise: Fiorenzo Manganiello, an Italian entrepreneur and financier, is known for his work in venture capital and blockchain technologies.
In 2018, Manganiello co-founded LIAN Group, a European venture capital firm focusing on investing in disruptive technologies. Under his leadership, LIAN Group has funded and supported numerous successful ventures in fields such as cryptocurrency, blockchain, digital infrastructure, and AI.
Manganiello's entrepreneurial ventures expanded in 2022 when he co-founded Cowa, a company that mines cryptocurrencies using renewable energy. Later that year, he launched PolarDC, a business that attracted €500 million for development in 2024, only to be acquired by H.I.G. Capital.
In addition to his business pursuits, Manganiello is a lecturer at the Geneva Business School, where he teaches courses on venture capital and blockchain technologies.
Philanthropy: In 2019, Fiorenzo Manganiello co-founded the LIAN Foundation, a charitable organization that works to support social and educational initiatives. A key focus of the foundation is the promotion of contemporary artists and the expansion of digital education.
Hobbies: Outside of his professional sphere, Manganiello is an enthusiastic collector, particularly drawn to street and digital art, including NFTs. With over ten years of collecting experience, he actively supports up-and-coming artists through various projects.
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