Bitcoinย (BTC) Pizza Day has taken a negative turn, with memeย cryptocurrency issuers profiting over $200,000 from pizza-related rug pulls on the 13th anniversary of whatโs thought to be the 1st commercial Bitcoinย (BTC) transaction.
Reportsย by data from dextoolโs โlive new pairsโ section, there has been 14 pizza-related memeย cryptocurrencies announced in the past 24 hours. Four have been confirmed as rug pulls, or schemes in which money is stolen from investors through any of a number of techniques. And at least 5 others are suspected of being so- wasย known honey pots, in which an investment can be sold only to the contract founder, and purchasers are left holding cryptoย tokens they canโt get rid of.
Bitcoinย (BTC) Pizza Day is marked on May 22. It dates back to 2010, when computer developer Laszlo Hanyecz purchased two pizzas for 10,000 bitcoin.
The 1st memeย cryptocurrency was pizza coin (PIZZA). It lasted for just eight minutes before developers altered the price of sell tax so that investors were unable to divest their holdings. A total of 34 traders purchased the cryptoย token with a total loss of 0.9892 Ethereumย (ETH) ($1,800).
Seemingly unperturbed, investors then flocked to cryptoย tokens named Bitcoinย (BTC) pizza and pizza inu, ending up with losses of greaterย than $12,000 in total.
Ethpizza and bpizza followed, with the previous reaching a $40,000 marketย capitalization and the latter soaring to greaterย than $100,000. Both cryptoย tokens became unsellable after the contract owner paused transfer and sales.
There are numerous ways in which developers can โpull the rugโ on projects, one of which is by adding a modifiable sell tax to the smart contract. That gives the contract owner theย potential to raise the tax so high that it makes the cryptoย tokens unsellable. An alternative โ and more common โ approach is for a smart contract owner to hold the vast bulkย of a cryptoย token, waiting for the price to boost before selling the cryptoย token into freshly formed liquidity from unsuspecting investors.
The appetite for investors to buy the cryptoย tokens, all of which have no fundamental value, spawned out of theย pastย few โ memeย cryptocurrency maniaโ following pepeโs momentous boost to a $1 Billion marketย capitalization. Investors appearย to be hoping to catch theย following hype-fueled cryptoย token in a market that has unlimited downside risk.
Sheldon Reback.
