Three Wallets Profit $666K from ‘Base is for Everyone’ Token Launch
Token launches face criticism for allowing front-running by informed individuals. The recent launch of the "Base is for everyone" token by Coinbase's Ethereum Layer 2 solution, Base, exemplifies this issue.
- Three wallets profited significantly before the official announcement on X.
- The token reached a market capitalization exceeding $15 million shortly after its debut.
- Wallet address 0x0992 gained $168,000, while 0x5D9D and 0xBD31 made profits of $266,000 and $231,800, respectively.
- The market cap dropped below $2 million after Base announced another coin, affecting liquidity.
- Valuations later recovered, with the market cap reaching over $18 million.
- Coinbase clarified that this token is not the official cryptocurrency of Base and will not be sold by them.
- The rapid fluctuations in small tokens can lead to negative wealth effects, benefiting a few while impacting many investors negatively.
Overall, the situation highlights ongoing concerns regarding token launches and their impact on market liquidity.