Golden Finance reported that the New York Department of Financial Services issued a consumer alert, warning to be wary of "emotion-based virtual currencies," or meme coins, emphasizing their extreme volatility, lack of supervision, and high risk of fraud. Including the sudden pump-and-dump "cutting leek" plan. The department warned that these tokens are often controlled by a small group of insiders, created on unlicensed platforms, and are susceptible to serious price manipulation. The New York Department of Financial Services also stated that it has begun to pay close attention to Meme coins. As part of the scam, Meme coin creators or insiders may conduct manipulative "wash trading" to create the illusion of rising market activity prices. It's often difficult for the public to tell which meme coins are being manipulated, and consumers should be especially wary of the recent surge in sentiment-based currencies created through unlicensed platforms that allow individuals with no technical expertise to create currencies with just a few clicks. Even on regulated platforms, the price of Meme coins is unstable and unpredictable, and can drop significantly over a short period of time.