A Memecoin Surges After Charlie Munger’s Death
A memecoin, called MUNGER, experienced an astonishing surge of over 31000% following the death of billionaire Charlie Munger. Investors rushed to decentralized exchanges with millions of dollars in Ether and stablecoins, causing the token’s value to skyrocket. On Wednesday, MUNGER’s daily trading volume reached $3.5 million.
Token Value Plummets Due to Smart Contract Issues
However, the token’s value plummeted by over 98% the next day due to revelations about its faulty smart contract. The contract contained erroneous functions that allowed developers to impose restrictions on the asset’s sale. GeckoTerminal reported that the smart contract included a blacklist function and authorization that could manipulate users into approving a malicious contract.
Charlie Munger’s Stance on Bitcoin
Charlie Munger, often referred to as Warren Buffett’s closest partner, was a vocal critic of Bitcoin and cryptocurrencies. He described Bitcoin as “detestable” and expressed concerns about its volatility, lack of regulation, and potential facilitation of criminal activities.
Risks Associated with Memecoins
MUNGER is just one example of the hundreds of memecoins created daily that capitalize on breaking news events. However, these tokens come with significant risks. Many anonymous creators engage in “rug-pulling,” withdrawing liquidity and leaving investors with substantial losses.
Hot Take: The Risks of Memecoins
The surge and crash of MUNGER coin after Charlie Munger’s death highlight the risks associated with memecoins. While these tokens may experience astronomical gains in a short period, they are highly speculative and often lack fundamental value. Investors should approach them with caution and be aware of the potential for rug-pulling and other fraudulent activities. The volatile nature of memecoins, combined with the lack of regulatory oversight, makes them a risky investment choice. It’s crucial to conduct thorough research and exercise due diligence before investing in such assets.
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