Celebration mood changes, “pizza” related meme coin damages over $ 200,000 lag pull | coindesk JAPAN | Coindesk Japan

May 22 marks the 13th anniversary of Bitcoin Pizza Day, which celebrates the day Bitcoin (BTC) was first used for payments. However, a newly issued pizza-related meme coin was used for “lag pull (exit fraud)”, causing more than $ 200,000 (about 27 million yen, converted to 135 yen per dollar), and the mood turned dark. there is

According to DEXTools’ “live new pairs” where new trading pairs can be seen, 14 pizza-related meme coins have been issued in the last 24 hours. Four of them have been confirmed to be “lag pulls” or schemes to steal funds from buyers in some way. In addition, at least five other tokens are suspected of being “honeypots” that prevent buyers from selling their tokens, harming them.

By the way, “Bitcoin Pizza Day” comes from May 22, 2010, when developer Laszlo Hanyecz bought two pizzas for 10,000 bitcoins.

Pizza Coin, Bitcoin Pizza, Pizza Dog…

The first meme coin was named Pizzacoin. Just eight minutes after its issuance, the developers changed the rate of the “sell tax” so that buyers would not be able to sell their tokens. There were 34 pizzacoin buyers, and the total damage was 0.9892 ETH ($1800).

Officially, there was no confusion, and after that, people continued to purchase tokens named “Bitcoin Pizza” and “Pizza Dog,” ultimately causing more than $12,000 in damage.

In addition, “Ethpizza” and “bpizza” were issued, and their market capitalization soared to over $40,000 and $100,000, respectively. However, both tokens can no longer be sold as the smart contract owner has stopped transferring and selling them.

There are multiple ways for developers to “pull the rug” of a project, one of which is to add developer-configurable sales taxes to smart contracts. The sale tax can be raised at the developer’s discretion to such an extent that the token cannot be sold.

Another, more common practice is for smart contract holders to hold a majority of their tokens, wait for the price to rise, and then sell them to unsuspecting investors.

With Pepe’s market capitalization skyrocketing to $1 billion, investors want to buy these memecoins, creating a memecoin boom. None of these memecoins have fundamental value. Investors seem to want to find the next token to rise like the hype in a market with endless downside risk.

｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Image: DEXTools
｜ Original: Bitcoin Pizza Day Turns Sour as Meme Coin Shysters Profit Over $200K in Rug Pulls