• Memecoin traders have been buying up obscure tokens such as Bald and Based, which have each seen staggering price gains.
• Wallet addresses swapped 0.5 Ether (ETH) into Bald token for a 100,000% return on investment in just 8 hours.
• The influx of hundreds of new, un-backed tokens brings with it the potential danger of scams, rug pulls and severe financial losses.
Memecoin Mania Hits Base
Memecoin traders have been buying up obscure tokens such as Bald and Based on Coinbase’s Ethereum layer-2 scaling solution Base. These tokens have seen staggering price gains despite their questionable utility.
Remarkable Shitcoin Surges
The Brian Armstrong-themed memecoin dubbed “BALD” experienced a 289,000% gain within the first 14 hours of trading. A small number of investors managed to score a 100,000% return on an initial investment of 0.5 Ether (ETH). Meanwhile, BASED has also gone on an incredible rally, surging well over 1,000,000%.
Potential Dangers
The sudden influx of hundreds of new, un-backed tokens also brings with it the potential danger of scams, rug pulls and severe financial losses. One developer reportedly made off with an undisclosed sum of ETH deposited by eager investors who were promised returns after they had multiplied their money multiple times over.
FOMO & Rug Pulls
The surge in memecoins is driven by FOMO (Fear Of Missing Out) among traders looking to cash in on the latest crypto craze and short term profits from rug pulls—a scheme where token developers dump their holdings onto unsuspecting buyers at exorbitant prices before exiting the project altogether.
Investment Advice
Many investment professionals have warned that any investments in memecoins should be treated as gambling adjacent due to their high volatility and risk for financial loss or fraud.