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Growth of Memecoins Shows the "Power of Decentralization": CZ

The digital currency ecosystem is fast-growing, and various innovations and trends are emerging daily.

One of these is Memecoins, a category of tokens that are built as a joke and centred around a comical object like a dog breed as in the case of Dogecoin (DOGE) and Shiba Inu (SHIB).

A defining feature of these memecoins is their massive growth rate, fueled by the rising purchase from mostly retail investors. Changpeng Zhao, the Chief Executive Officer of Binance, known on social media as “CZ”, said in an interview with the Associated Press that the growth of memecoins, particularly Dogecoin is a direct reflection of the “power of decentralization.”

“To be honest, I don’t get Dogecoin. But this shows the power of decentralization. What I think may or may not matter. If a large enough number of people in the community values it because it’s cute, because they like the meme, then it has value,”

Zhao added that “Dogecoin has lasted so many years. It’s gone up and down, up and down, but it’s lasted. And now we have Shiba, which is also a meme coin. We have a lot more meme coins. But guess what? For something to be valuable, you only need one other person to want to buy it.”

Defining Crypto Bubble

The Binance Executive said the term “Bubble” describes many digital currencies, including memecoins, and Bitcoin is a relative term. He explained that many great companies today, including Amazon, have experienced high volatility at some points in their lives, adding that with additional cash inflows, the digital currency ecosystem will become more stable and less volatile.

“There’s no clear definition of what a bubble is. If an asset’s price drops more than 80%? Bitcoin dropped more than that and then recovered. “

“Amazon dropped (more than 90% from the start of 2000 into September 2001), and now they are one of the most valuable companies in the world. Did it go through a bubble? According to most laymen’s definition, it probably did. For Jeff Bezos, he would probably disagree,” he said.

Zhao noted that as long as people understand the risks they hold, then the fluctuation concerns might not matter anymore. As he has always done, Zhao confirmed that he is a less diverse investor as he only holds Bitcoin and Binance Coin (BNB). He plans to give away most of his wealth for charity.

Shiba Inu Announces Metaverse Initiative Codenamed "Shiberse"

The influx of blockchain and tech brands into the metaverse has formed a major trend that the developers behind the Shiba Inu memecoin are unwilling to let slip by them.

Shiba Inu is announcing the launch of the Shiberse, a metaverse world that will be focused on redefining the incentivization model for its growing community.

As contained in a Blog Post shared with its Shiba Army, the brain behind the memecoin said while the codename for its new metaverse is Shiberse, the real name as well as the developers it is working with to bring it to reality will be announced in the nearest future which could be as early as this month.

“The Metaverse is set to be one of the biggest areas within crypto for many to enjoy, while others will produce content and developers will set up shops within using it as another great resource to offer crypto communities incentivization, content, and regular royalties,” the announcement reads.

The Shiberse metaverse activities will kickstart with the sale of its virtual land plots dubbed Shiba Lands. The Shiba Lands will be the most prominent foundational real estate asset upon which other features can be built. Designed to mimic Decentraland and The Sandbox, the Shiba Lands will be opened for sale exclusively to its LEASH token holders after which it will now be made available to the public.

In order to prevent Bots and guarantee a successful sale of the Shiba Lands, the team said a queuing model will be activated for the sales, and as of now, no more details were offered with respect to the proposed sale.

From Meta Platforms Inc (formerly Facebook) to Nike, Adidas, Dolce & Gabbana, and other prominent brands, the desire to become a part of the metaverse has soared in the past year. Despite the massive mainstream push into this virtual world, Shiberse hopes to be amongst the pioneering leaders according to the published announcement.

Dogecoin Founder Criticizes Memecoin Creators as Get-Rich-Quick Schemes Proliferates

Billy Markus, the iconic founder of the Dogecoin (DOGE) meme coin, has lashed out on his Twitter handle as he called out a new generation of developers looking to get rich quick through meme coin creations.

The origin of the lashing out was centred on the attempts by unknown followers flooding his page with adverts of memecoins whom Markus, popularly known as Twitter as Shibetoshi Nakamoto, says the host of tokens being paraded are not memecoins as their motives are clearly different from that of Dogecoin in its early days.

“Spam advertising, lying about who is involved in a project, making up ridiculous promises, desperately trying to get Elon’s attention to promote you, etc. are not clever or amusing,” he said in the tweet, adding;

“Remember Dogecoin was made 8 years ago. As Satire making fun of the idiotic coins, irony. Satire, current “meme” coins aren’t even memes. they’re made by people trying to get rich off of other people trying to get rich. to each their own, but it is indeed a different thing.”

Markus’ complaints reverberated with some of his 1.1 million followers, with comments that suggested the meme coin “invasion” is invariably a growing trend in the digital currency ecosystem.

Memecoins are generally established as a joke-at least, that was what Dogecoin was known for in the early days. However, the tendencies for these digital assets to print enormous growth rates, especially with promotional tweets from Elon Musk, have made many think the launch of related memecoins can be an avenue to cut out of the crypto pie. Memecoins are now very ambitious, with projects like Floki Inu storming the streets of London and the transport system in a bid to generate some publicity.

While the digital currency ecosystem is evolving quickly, emphasising utility beyond memes, Billy Markus pleaded that at least ambitious developers should stay out of his Twitter threads for selfish gains.

Ethereum Network's Gas Fees Skyrocket Amid Memecoin Frenzy

The Ethereum network has been experiencing a surge in gas fees due to the ongoing memecoin frenzy. As a result, the network’s daily revenue has skyrocketed and has even surpassed that of Bitcoin. However, while some Ethereum proponents celebrate the growing revenue, many others are concerned about the network’s growing congestion and the difficulty in processing transactions.

According to recent reports, there has been an unusual shift in the top 10 gas-burning altcoins. Instead of the usual suspects like ETH, WETH, and USDT, memecoins such as TROLL, APED, and BOBO have become the top 10 spenders. The average gas price for Ethereum transactions as of April 20 was 81.94 gwei, which is a significant increase from 60.82 gwei on April 19 and 44.42 gwei last year.

Independent Ethereum educator Anthony Sassano noted the surge in daily fee revenue of the Ethereum network and pointed out that the network had brought in 28 times the revenue of Bitcoin. He also mentioned Ethereum layer-2 platforms like Arbitrum One that have outperformed the BTC network in terms of daily revenue due to the ongoing meme frenzy.

Ethereum proponents argue that the high gas fee and subsequent higher revenue highlight the network’s growing usability. However, many on Crypto Twitter were quick to point out that the extensive usage they are referring to is just a few thousand users gambling on memecoins. Some users have even paid gas fees as high as a few hundred dollars, while others complained about having to pay a higher gas fee than the actual transaction.

The soaring gas fees were also blamed on a Maximal Extractable Value (MEV) trading bot that is front-running memecoin trades on a massive scale. The bot in question, jaredfromsubway.eth, has been the top gas spender in the last 24 hours, spending 455 ETH ($950,000) and using 7% of the total gas of the network. In the last two months, it has spent more than 3,720 ETH ($7 million) in gas fees and performed more than 180,000 transactions. The Subway-themed bot is using the sandwich trading technique to pocket millions of dollars while congesting the network at the same time.

This situation highlights the need for Ethereum to address its scalability issues and find a long-term solution to address the increasing demand for memecoin trading. The current frenzy may be beneficial for short-term revenue, but it is also causing significant congestion and higher fees for users. The Ethereum network needs to find a balance between profitability and usability to ensure the long-term sustainability of the network.

In conclusion, the growing memecoin frenzy has caused Ethereum’s gas fees to skyrocket and has resulted in a surge of revenue for the network. However, it has also highlighted the growing congestion and difficulty in processing transactions. The Ethereum network needs to find a long-term solution to address its scalability issues and find a balance between profitability and usability to ensure its long-term sustainability.

KuCoin User Linked to Memecoin Scams

KuCoin, which is a famous cryptocurrency exchange, has just verified that the address of a user is related to the start of hundreds of frauds using memecoin. This news was recently reported. A user on Twitter discovered on April 26 that the in question address had been responsible for the creation of two to five memecoins each and every day for the previous two years. The community member also brought up the fact that KuCoin “owned and controlled” the wallet addresses, which they mentioned in their post. Despite the fact that the blockchain explorer Etherscan has identified the address as belonging to a false phishing wallet, KuCoin has declared that they would not freeze the user’s funds in the absence of an official warning from law enforcement.

However, KuCoin has also stated that they will assist and cooperate with law enforcement agencies to take temporary risk control measures if the reporting party provides relevant legal documents, procedures, or reporting records. KuCoin made this statement in response to a question about whether or not they would do this. This action will be carried out in compliance with user agreements, complaints and reports, as well as the laws of the Seychelles.

The KuCoin platform had a security breach on April 24, which led to the official Twitter account of the platform being hacked. This issue arises as a consequence of that incident. The account intentionally uploaded misleading activities, which resulted in the loss of assets for several of its followers. After discovering the security flaw, KuCoin collaborated with Twitter to restore the hacked social media account and made a commitment to compensate the users whose accounts were compromised.

Some people in the cryptocurrency community have voiced their disagreement with KuCoin’s decision to not place a freeze on the user’s assets. These individuals believe that it is the responsibility of the exchange to protect its users from fraudulent behavior on its platform. On the other hand, some people have pointed out that KuCoin does not have the legal power to freeze assets since it has not received an official warning from law authorities.

This incident demonstrates how vitally important security is in the cryptocurrency business and how essential it is for exchanges to take preventative steps to thwart fraudulent conduct. Although KuCoin has pledged to assist law enforcement agencies, it is not yet clear how this situation will be resolved or what steps will be taken to prevent incidents of this nature from occurring in the future. KuCoin has stated that it will assist law enforcement agencies.

WSB Token Team Member Allegedly Dumps Coins

The world of cryptocurrency has seen its fair share of volatile market movements, but none quite as eventful as the launch of the WSB Coin token project. Launched on May 2, by moderators of the popular trading subreddit r/WallStreetBets, the token claimed to be the official memecoin of Wall Street Bets. This subreddit gained notoriety after the GameStop short squeeze, which sent hedge funds reeling in January 2021.

The creators of the WSB token claimed that there would be no allocation for the team and that 10% of the coins would be reserved for the subreddit. The website touted it as the “fairest launch memecoin you will find with no team allocation and no presale. Just a free airdrop and some coins for the community. 10% of the $WSB supply is reserved as a treasury for the r/wallstreetbets sub to do with as they please.”

However, just days after the launch, the cryptocurrency community was hit with shocking news that one of the token’s team members had started dumping massive amounts of tokens. On May 4, on-chain detective ZachXBT tweeted that “zjz.eth,” who runs the moderation bots for the subreddit, had allegedly pulled the rug on WSB investors. According to on-chain data, zjz.eth had sold WSB coins in exchange for 334 Ether (ETH), worth around $635,000 at the time of writing.

The market reacted accordingly, and the token price plummeted from an all-time high of $0.00067279 to an all-time low of $0.00004827 in just two days. Community members were quick to warn others not to buy the dip as the moderators still had access to 10% of the total supply. The incident has raised concerns among the community members, who feel betrayed by the moderators of the subreddit.

Meanwhile, another moderator who goes by the name WSBmod, has threatened to report those involved in the dump to the police and the FBI if they don’t come forward. The moderator urged zjz.eth to return the money and claimed that they had identified the team member responsible for the dump. However, the identity of the team member is still unknown.

This incident is a stark reminder of the risks involved in investing in cryptocurrencies, especially when dealing with new tokens that are not yet widely accepted. The WSB token project had gained a significant following due to its association with the popular subreddit, but the rug pull has left many investors feeling cheated. It remains to be seen what actions the moderators of the subreddit will take to address the situation and regain the trust of their community.

In conclusion, while the cryptocurrency market may offer lucrative opportunities for investors, caution is advised, especially when investing in new and untested tokens. The WSB Coin dump is a clear example of the potential pitfalls that can arise when investing in such projects, and serves as a cautionary tale for investors in the cryptocurrency market.

Trader Spends $118k in Ether on Memecoin

In recent news, a single trader has spent an enormous amount of money on gas fees to purchase a memecoin called Four (FOUR) on the Ethereum network. The trader paid $118,000 in gas fees using Ether (ETH) to buy $155,000 worth of FOUR tokens through a Uniswap trade. The trade involved swapping 84 Wrapped Ether (WETH) for 13.8 billion FOUR tokens.

The trader voluntarily increased their gas fee to speed up the transaction time and has reportedly gained 133 ETH ($245,667) in unrealized profit on their investment in the memecoin. However, this raises the question of whether the rise in gas fees is sustainable for mass adoption, as many have criticized the fees for being too high.

The Ethereum network has been facing a lot of criticism for its gas fees, which have been increasing due to the rise in activity on the network. Some prominent Ethereum advocates have praised the heightened activity for its revenue-generating effects and long-term deflationary pressure on the supply of Ether. However, others have claimed that mass adoption will never be achieved if the network remains unaffordable.

Another major reason behind the drastic uptick in gas fees is the maximal extractable value (MEV) trading bot that is front-running memecoin trades en masse. A pseudonymous attacker known only as jaredfromsubway.eth has been profiting significantly from the heightened network use. The attacker has been using a sandwich attack to manipulate the price and profit from the user.

A sandwich attack occurs when an attacker “sandwiches” a victim’s transaction between their two transactions. Jared has cleared a whopping $950,000 in profits from the sandwich attacks alone. On April 20, Jared used 7% of the total gas on the network and spent 455 ETH in transaction fees.

In conclusion, the rise in gas fees on the Ethereum network has caused debates in the crypto community over its impact on mass adoption. The attacker, jaredfromsubway.eth, has been using a sandwich attack to manipulate the price and profit from the user. While some advocate for the heightened activity, others have criticized the fees for being too high, and it remains to be seen whether the network will become more affordable for mass adoption.