A popular Twitter video demonstrated how simple it is to launch a memecoin crypto project, sparking concerns that the pace of rug pulls may rise.
Whitelights, a generative artist and Manifold studio developer, initially shared the video, which demonstrated how to construct and deploy a memecoin in just 27 seconds using OpenZeppelin’s Contracts Wizard.
Video Genenrates Over 1M views
The movie was purely for educational purposes, and the Easy_Money token was only available on the testnet, according to the developer.
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As of press time, the video had received over 1.5 million views and approximately 10,000 bookmarked. Many members of the crypto community predict that it will lead to the spread of memecoins, which will eventually become rug pulls.
ZachXBT, an on-chain detective, noticed the increasing number of bookmarks and commented “wtf” with a screenshot of the bookmarks when it was still fewer than 2000.
Rug pulls are common in memecoins, as numerous unethical actors manufacture tokens to steal funds from investors. Now that it is feasible to create a memecoin project in under a minute, undesirable actors may use the chance to create as many as possible.
What Does This Means For the Crypto Industry?
memecoin deploy% speedrun 27s ⏱️ pic.twitter.com/OYaXGb5ITR
— whitelights.eth ⌖ (🦇🔊) (@iamwhitelights) May 5, 2023
The recent spike of Pepe and others such as WOJAK has fueled speculation that the memecoin season has returned. Crypto traders may expect these digital assets to proliferate in the market throughout this time period.
In April, digital artist Rhet Mankind used ChatGPT to develop a TURBO memecoin. Its market capitalization has now surpassed $100 million due to widespread community interest.
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Meanwhile, cryptocurrency reporter Wu Blockchain noted that malevolent players are attempting to profit from these assets in a variety of ways. According to the Chinese writer, honeypot tokens with names like PEPE, TURBO, and so on have appeared on Arbitrum. Wu Blockchain also stated:
“The basic method is to push these Tokens with the same name to the forefront of monitoring platforms like Dex Screener and DexTools by swiping trading volume and adding more 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.”
As a result, industry participants have cautioned crypto investors to perform thorough research before investing in any digital asset. Binance CEO Changpeng ‘CZ’ Zhao has warned that investing in memecoins is risky.
