– Memecoin traders on Coinbase’s Ethereum layer-2 scaling solution Base have been buying up obscure tokens such as Bald and Based.
– Despite questionable utility and lack of official websites or purpose, these tokens have seen staggering price gains.
– One memecoin called “BALD” experienced a 289,000% gain within the first 14 hours of trading.
– Another memecoin called “BASED” has surged over 1,000,000% in the last 20 hours, commanding a $1.39 billion fully-diluted market cap.
– However, memecoins are known for their volatility and potential for scams, rug pulls, and financial losses.
– One developer allegedly made off with investors’ ETH deposits, promising to return it after multiplying their funds.
– Some warn that the memecoin surge may already be over and advise against FOMO buying at this stage.
– Trading on Base remains technical, requiring investors to send ETH to a Coinbase developer contract address and swap it on a specialized decentralized exchange.
– Base users currently cannot bridge their tokens off the network until a token bridge is introduced by Base developers.