Memecoins have no utility or value on their own. They exist only because there are users who find it funny and decide to buy it to see what happens. The problem is that there are those who take advantage of this virality and gain economic benefits. If cryptocurrencies were like gambling already, memecoins are one step closer to randomness and craziness.

Unfortunately, the memecoin market is still very lively. Although Dogecoin isn’t having its heyday, there are others like “Pepe the Frog” with the most prominent meme popping up. They are a roller coaster. Everyone knows and still many decide to join.

There is an interest behind the joke. These cryptocurrencies were not created just for jokes. In many cases, those behind it promote a campaign on the networks so that more users decide to bet as well. Will the wheel get bigger? Those who register first win, those who arrive later lose.

Under this game, there are real scammers who know the dynamics of the market well. Users who create multiple memecoins with the intention that one of them has enough charisma or attraction to attract others. We have encountered a particularly striking case these days.

114 memecoins in 45 days. As researcher ZachXBT explains, some strange movements were detected pointing in the same direction. In the last month and a half, up to 114 memecoins have been created and all funds collected have been transferred to the same deposit.

The address is 0x739c58807B99Cb274f6FD96B10194202b8EEfB47. And there may be more. These memecoins are the ones pointing to the same account. The exact scope of this scam is unknown, but each transaction is for an ETH pair. The exchange is approximately 2,000 Euros. When we look at the total number of transactions, we can talk about a profit close to half a million euros.

Trading (unnoticed) on Coinbase. Such operations are easy to track once detected, as movements are recorded. In fact, in the case of 114 memecoins scammers, they point to a Coinbase address, so easy to follow.

If it’s public, why didn’t it prevent the creation of more memecoins? It is mainly a matter of volume. Transactions are for a few ETHs, so they go practically unnoticed.

Memecoins in top 100 cryptocurrencies. The lack of any technical foundation does not prevent some memecoins from infiltrating the top of the most valuable cryptocurrencies. We’ve already seen this with Dogecoin or Shiba Inu, and with the Floki Inu token, which has skyrocketed 70% recently. Then again to fall hard.

Excessive volatility without brakes. That the winners are scammers who do not hesitate to take advantage of this system.

Image | kanchanara

on Xataka | Memecoins and how that joke cryptocurrencies became something very serious