Token debuts remain a controversial issue, often criticized for their bad execution that allows people, supposedly armed with internal information about imminent releases, to obtain profits through career campaigns.
The last example is the Token “base is for all” announced by the Ethereum Layer 2 Solutions of Coinbase on Wednesday. Three cryptographic wallets bought tokens before the official announcement in X, resulting in significant profits, according to Blockchain Sleuth Lookonchain.
Around 7:30 p.m. UTC on Wednesday, Base announced the debut of his token coined through Zora, a social network in the chain, empowering creativity by converting any content published on his network into negotiable currencies. The Token quickly increased to a market capitalization of more than $ 15 million, which generated significant profits from at least three cryptographic addresses that acquired coins before the official announcement in X.
“3 wallets bought a lot of” base is for everyone “before @Base published and sold them, obtaining a gain of ~ $ 666k,” Lookonchain said in X.
The 0x0992 wallet address invested 1.5 Ethher (ETH), to buy 256.39 million token units at 12:30 PM UTC and sold all the boards of coins for 108 ETH after the official announcement, wrapping a gain of $ 168,000 in just over an hour. The 0x5D9D wallet address invested 1 ETH ($ 1,580) and left with $ 266,000 earnings, and another address, labeled 0xbd31, won $ 231,800.
The market capitalization of the Token joined less than $ 2 million after that, since the base announced another currency for its Farcon poster, absorbing the liquidity of the base is for all tokens and leaving the participants in the latter with a great loss.
However, the valuations have been recovered since then, with the market capitalization of the base, it is for all those that exceed the $ 18 mark from writing, according to the DEX screen data source. Base creator Jesse Greenling the Token, saying: “The objective is to” normalize the placement of the entire content in the chain. “
Base only published in Zora
Coinbase clarified that the base is for all the currency is not the official cryptocurrency of the base and layer 2 did not sell them directly. “Base published in Zora, which automatically touches the content,” said Coinndase spokesman for Coindesk.
The discharge of legal responsibility in Zora suggested the same, based also clarifying its position in X, saying that it will never sell these tokens.
“To be clear, the base will never sell these tokens, and these are not official network tokens for base, coinbase or any other related product. The content we share is creative, and we will continue to bring the culture in the chain,” Base said.
Negative wealth effect
The rapid booming cycles in these smaller tokens often create a net negative wealth effect, allowing a few to select profits significantly, while most face losses. This often leads to a broader digital asset market drainage.
The larger the boom and fall cycles associated with these currencies, the stronger the effect of negative wealth will be.
For example, this year’s debut of Libra and Trump tokens destroyed millions in investors, marking a more important price in Bitcoin and the broader cryptographic market.
