- The Memecoin mania on Coinbase-supported Base has produced both enormous gains and the possibility of rug pulls.
- Memecoins are being accumulated by cryptocurrency traders in place of Bitcoin as a result of their potential for larger gains in comparison to Bitcoin’s declining returns.
- The top memecoins making news this past weekend include BALD, which soared 289,000% in the hours following the launch, and BASED, which soared over 1,000,000% in just 24 hours.
- After trading BALD, a few addresses on the Base network cashed out huge amounts of Ether, which sparked worries about possible market manipulation.
- With a 24-hour trading volume of almost $87 million and a price increase of about 61 percent, caution is advised given BALD’s lack of an established website and audited infrastructure.
- Due to their low liquidity, meme coins like BALD and BASED trap traders and put them at risk of rug pulls.
- Rug pulls happen when developers take users’ money with the intent to recoup it from profits, but there is no assurance that the money will ever be returned, making it a dangerous investment.
- Because the market has already experienced considerable gains, traders are advised to exercise caution and stay away from dangerous meme coins.
Earned $1M with $1K in 1 day! pic.twitter.com/gXIDRjbhic
— Lookonchain (@lookonchain) July 30, 2023