The Memecoin boom on the #Base network brings enormous profits but also comes with huge risks associated with scams.
The frenzy around memecoins has even reached the cryptocurrency exchange Coinbase. It introduced a new project called Base, built on the second layer of #Ethereum (ETH). However, Base has also brought numerous scammers creating memecoins and various rug pulls associated with Coinbase or its CEO, Brian Armstrong.
Crazy investment returns
As of July 30th, users began purchasing a series of questionable tokens on Base. One of these #memecoins inspired by Brian Armstrong, called BALD, experienced an astonishing 289,000% increase in value within the first 14 hours of trading. However, this token lacks an official website, and its purpose, creator, or utility remains unknown.
A small number of investors were able to achieve returns of up to 100,000% on their investment from a relatively small initial deposit. According to data from the blockchain analytics platform Lookonchain, four different wallet addresses began exchanging 0.5 ETH (approximately 950 USD) for BALD in the first four minutes of trading. After eight hours, these addresses exchanged their BALD back to ETH, resulting in a total of 554 ETH, which currently holds a value of over 1 million USD.
BALD is not the only one
Another memecoin with the abbreviation BASED also experienced astonishing growth. Its value increased by over 1,000,000% in just 20 hours.
As of now, BASED has a market capitalization of 1.39 billion USD. However, as many investment experts have pointed out, memecoins are known for their enormous price fluctuations, and any investment in them should be perceived as speculative and risky.
The sudden influx of hundreds of new, unsubstantiated tokens brings potential dangers of scams, rug pulls, and significant financial losses. One developer reportedly disappeared with an unspecified amount of ETH deposited by eager investors expecting high profits. It is important to exercise extreme caution and do thorough research before investing in memecoins or any highly speculative assets, as they can carry a high level of risk.
Get back your ETH. I just need to multiply it, wrote the developer
It is interesting to note that immediately after posting the message, the developer deleted his account on Telegram.
Traders are also warning against tokens. A trader using the pseudonym "Horse" informed his 180,000 followers that buying tokens like BALD at this advanced stage might not be a good idea.
As of July 13th, Coinbase launched the Base network for developers, and trading on Base is still relatively complicated.
In order for investors to interact with tokens on the network, they must send their ETH to the developer's contract address on Coinbase. Subsequently, they need to swap ETH for the token of their choice on the specialized decentralized exchange LeetSwap.
It's important to note that Base users do not have the option to move their tokens outside of the network. Once ETH is deposited on the network, it cannot be transferred back to any other usable network except Ethereum until the Base developers implement such functionality.
