A trending Twitter video has shown how easy it is to create a memecoin crypto project, raising concerns that the rate of rug pulls will increase. The video, first posted by generative artist and Manifold studio developer Whitelights, showed how to create and deploy a memecoin in just 27 seconds using OpenZeppelin’s Contracts Wizard.
The developer noted that the video was only for educational purposes, and the Easy_Money token created was only on the testnet. The video has already garnered over 1.5 million views and nearly 10,000 bookmarks as of press time. Many stakeholders in the crypto community believe that it will lead to the proliferation of memecoins which will end up as rug pulls. On-chain sleuth ZachXBT noted the growing number of bookmarks, commenting “wtf” with a screenshot of the bookmarks when it was still less than 2000. Rug pulls are prevalent among memecoins, where many bad actors create tokens to steal investors’ funds. Now that developing a memecoin project in less than a minute is possible, bad actors could seize the opportunity to develop as many as possible.
Even before the emergence of the video, there had been an increase in the rate of memecoins created recently. While crypto data aggregator CoinMarketCap lists over 500 memecoins, industry players believe they are in the thousands. The recent rally of Pepe and others like WOJAK has brought sentiments that the memecoin season is back. During this period, crypto traders can expect the proliferation of these digital assets in the market. For context, digital artist Rhet Mankind created a TURBO memecoin using ChatGPT in April. Today, its market cap has crossed $100 million as it has generated significant community interest.
Meanwhile, Crypto reporter Wu Blockchain reported that malicious players try to profit from these assets through various means. The Chinese reporter said honeypot tokens with the same name as PEPE, TURBO, etc., have emerged on Arbitrum. Wu Blockchain added:
“The basic method is to push these Tokens with the same name to the forefront of monitoring platforms such as Dex Screener and DexTools through swiping trading volume and adding greater liquidity, attracting users to buy, and then selling a large number of reserved Tokens when the price rises to a certain level Smashing the market to make a profit.”
Due to this, industry players have warned crypto investors to conduct proper research before investing in any digital asset. Binance CEO Changpeng ‘CZ’ Zhao warned that memecoins investments are high risk. On this AlsaBot team is wishing you a great week and don’t forget to follow us on our Telegram channel!