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- Sony’s newly launched Soneium blockchain has blacklisted two memecoins due to unauthorized use of its intellectual property
- Buyers of the Aibo and Toro memecoins have experienced significant financial losses following the blacklisting.
- The incident has sparked a debate over the balance between intellectual property enforcement and blockchain decentralization
Sony’s newly launched Soneium blockchain has faced immediate controversy by blacklisting two memecoins, Aibo and Toro, citing unauthorized use of their intellectual property. This action has led to substantial financial losses for buyers and ignited discussions about the implications of centralized control within blockchain ecosystems. The action follows complaints by the creator of ‘Chill guy’ creator Philip Banks, who threatened to sue the creators of the CHILLGUY memecoin over the same offense.
Aibo and Toro Fall Foul of Soneium’s Rules
Soneium launched on 14 January, a Layer 2 blockchain built on Ethereum, aiming to integrate blockchain technology across its diverse business sectors. Shortly after the launch, reports emerged that two memecoins, Aibo and Toro, had blacklisted on the platform after they had traded for several hours; Aibo referenced Sony’s robotic dog series, while Toro alluded to Toro Inoue, a character associated with Sony Interactive Entertainment.
Sony Block Solutions Labs, the entity behind Soneium, stated on X that these tokens were restricted to protect its intellectual property rights:
Soneium is committed to protecting creators’ IPs and rights onchain while maintaining the spirit of decentralization!
Our documentation outlines how we safeguard IP rights and combat malicious activities – all while keeping web3’s core values of openness and innovation intact.… pic.twitter.com/RHGvNIDXHE
— Soneium
(@soneium) January 14, 2025
(@soneium) Holders of these memecoins reported being unable to trade or access their assets, resulting in significant financial losses. These losses may have been substantial for some: the Aibo memecoin had reached a market value of approximately $2.7 million before the blacklisting, while Toro peaked at around $1.1 million. Affected investors accused Soneium of “rugging” them—a term used to describe actions that lead to a token’s value collapsing, often due to malicious intent.
Soneium Protecting Creator IP
The incident has sparked a broader debate within the blockchain community regarding the extent of control that platform developers should exert. Critics argue that such centralized interventions contradict the decentralized ethos of blockchain technology. Alon, founder of pump.fun, criticized Soneium for “nuking everyone’s position to 0,” while Kawz from Time.fun highlighted that users lost over $100,000 in ETH due to the freezing of token contracts.
Others were supportive of Soneium’s stance, saying that IP rights need to be protected:
Protecting creators’ IP rights is essential to maintaining growth and future-proofing sustainability in the decentralized cloud ecosystem.
— io.net (@ionet) January 15, 2025
This situation underscores the challenges that arise when traditional corporate entities with established intellectual property rights enter the decentralized blockchain arena. The balance between enforcing IP rights and adhering to the principles of decentralization remains a contentious issue, with implications for the future development and governance of blockchain platforms.
The post Soneium Bans Two Memecoins on First Day appeared first on FullyCrypto.