Finance

Base is for Everyone’ Sees Wild Ride as Whales Profit Big from Well-Timed Trades

2 days ago
Bitcoin Ethereum News

Base is for Everyone, the latest memecoin to grab the attention of the crypto community, had a rollercoaster launch on the Zora platform.

Promoted by the Base network, the coin started off with a bang but quickly face-planted, losing over 95 percent of its value in a matter of days. But, as always in the world of crypto, it wasn’t over yet. In a stunning second-act reveal, Base is for Everyone has mounted an unexpected recovery. Today, it has a market cap of around 16 million dollars.

Even though the sudden downturn left many investors reeling, blockchain data has shown that a small number of wallets turned the situation to their advantage, reaping sizable profits by buying at rock-bottom prices and then selling into the short-lived rally that the Base launch and subsequent marketing created. The whole episode fueled the ongoing drumbeat for more transparency and fairness in markets that make a prima facie case for being rigged.

Big Gains from a Small Entry: Wallets Cash In

As per on-chain analysis, three wallets made significant profits from the memecoin’s initial volatility. These three wallets made their purchases just before Base sent out its promotional tweet. This has caused some to wonder if insiders had access to non-public information prior to the announcement.

Wallet 0x0992 initially spent around 2,370 dollars for about 256.39 million tokens. Shortly after that, the price surged.

Right after the price surge, this wallet sold all of its tokens for approximately 170,400 dollars.

Another wallet, 0x5D9D, had an even more remarkable outcome. It spent 1 ETH (approximately 1,577 dollars) to buy 82.86 million tokens and later sold them for 169.7 ETH, equivalent to about 267,600 dollars. The profit margin was approximately 266,000 dollars, achieved in a matter of hours.

The tidy profit was made by the third wallet, 0xBD31, which spent 1 ETH (worth 1,577 dollars) to acquire 131.92 million tokens. Of these, 109.92 million were sold for 148 ETH (equivalent to 233,400 dollars today). Profits are, to some degree, even more pronounced because 0xBD31 hasn’t sold all the tokens it acquired, and presumably never will.

These steps have attracted both praise and blame from the community. Some view the actions of the wallets as the savvy, opportunistic sorts of trading we should expect in a semi-efficient market; others see access to this kind of information as problematic and memecoins as, well, still a thing.

Questions of Fairness and Timing

These wallets sharp profits, especially their timing just before the Base tweet, have spurred the speculation and debate. Was it a lucky guess, a deep on-chain analysis, or something more concerning like leaked or inside information? As usual in crypto, hard to come by are the answers, but the questions themselves, as always, are a reminder of the ongoing issue of an uneven playing field in the decentralized space.

The very nature of memecoins is that they are often speculative and volatile; when you’re tying them to promotional activity by major networks like Base, you’re really cranking up the stakes and possible rewards. As with past memecoin surges, this one has the potential to line the pockets of those with quicker reflexes and better access to the promotional pumps before the rest of the market even knows what’s happening.

The community is increasingly demanding clarity from Base about the timing of these trades and the wallets implicated in them. Why? Because major entities are directly promoting or supporting meme assets, and the community is asking for greater transparency in these situations.

A Second Wind for the Token?

Even though the value initially plunged by 95 percent, Base is for Everyone has managed to stabilize and even has rebounded to a certain extent. The current market cap of 16 million dollars suggests there’s still a decent amount of interest in the token, maybe pushed by its link with Base or the possible future growth of the community.

Yet, the project has to live with early profit-taking as a potential shadow. Whether the token can build a sustainable community and value proposition is an open question, but we do know this: the world of memecoins continues to operate at an exceedingly high speed, rewarding above all else, it seems, a combination of astute timing, shrewd strategy, and just plain luck.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/base-is-for-everyone-sees-wild-ride-as-whales-profit-big-from-well-timed-trades/