The beginnings in Token remain a controversial problem, often criticized for their poor execution which allows individuals, supposedly armed with initiate information on imminent launches, to take advantage of the leading campaigns.
The latest example is the “Base is for everyone” token announced on Wednesday by Ethereum Layer 2 in Coinbase. Three crypto portfolios bought tokens before the official announcement on X, resulting in significant profits, according to Blockchain Sleuth Lookonchain.
Around 7:30 p.m. UTC on Wednesday, Base announced the beginnings of its token created via Zora, a social network on chain, empowering creativity by transforming any content published on its network into negotiable coins. The token quickly reached a market capitalization of more than $ 15 million, which brought significant gains to at least three cryptographic addresses which acquired documents before the official announcement on X.
“3 portfolios bought a large quantity of” base is for everyone “before @base displays and sold them, making a profit of ~ 666k $,” said Lookonchain on X.
The 0x0992 portfolio address has invested 1.5 ether (ETH), to buy 256.39 million token units at 12:30 p.m. UTC and sold the whole hiding place for 108 ETH after the official announcement, pocketing a profit of $ 168,000 in just over an hour. The 0x5D9D portfolio address invested 1 ETH ($ 1,580) and left with $ 266,000, and another address, labeled 0xBD31, made $ 231,800.
The market capitalization of the token has landed at less than $ 2 million after that, while the base announced another part for its Farcon poster, the reduction in the liquidity of the base is intended for everyone and leaving the participants in the latter with a large loss.
However, the evaluations have been recovered since then, the market capitalization of the base has been for everyone at the top of the $ 18 bar during writing, by data source screener. Basic designer Jesse lit the token, saying: “The goal is to” normalize any content to the chain “.
Base only published on Zora
Coinbase said that the base is for everyone, Coin is not the official cryptocurrency of the base and that layer 2 did not sell them directly. “Base published on Zora, which automatically tokenizes the content,” said Coinbase spokesperson in Coindesk.
The legal non-responsibility clause on Zora suggested the same thing, with a base also clarifying its position on X, saying that it will never sell these tokens.
“To be clear, the base will never sell these tokens, and they are not official network tokens for the base, the coinbase or any other related product. The content that we share is creative, and we will continue to bring culture in mind,” said base.
Negative wealth effect
The rapid boom-bust cycles in these smaller chips often create a net negative wealth effect, allowing some privileged to take advantage of significantly while the majority losses face. This often leads to a wider market liquidity drain in digital assets.
The more the arrow and bottle cycles associated with these parts are high, the greater the negative wealth effect.
For example, the beginnings of this year of balance and Trump destroyed millions of people in the richness of investors, marking a major price of Bitcoin and the larger cryptography market.
