Following the recent reveal of Brian Armstrong‘s cat’s name, ‘Toshi,’ a token bearing the same name is emerging as a premier meme coin offering on the upcoming Base blockchain. Armstrong, founder of Coinbase, mentioned his pet’s name during a podcast, noting its origin from the pseudonymous Bitcoin creator, Satoshi Nakamoto.
Seemingly ludicrous yet gaining traction, Traders are investing considerable amounts into toshi (TOSHI) tokens. On SushiSwap, a decentralized exchange on the Base network, $10 million of these meme coins exchanged hands in a day and saw an influx of more than $1 million in Ether liquidity. Some enthusiast traders buying large clips worth up to $16,000 in a single transaction, as recorded recently.
A fervour around this token can be attributed to investors aiming to mirror the monumental rise of Dogecoin (DOGE) and Shiba Inu (SHIB) in previous years – both tokens inspired by the Shiba Inu dog breed. As Jeff Mei, COO of crypto exchange BTSE, suggests, it’s important to note that memecoins are a highly speculative and volatile section of crypto tokens. They often lack practicality compared to established tokens like ETH, presenting factors of risk, but concurrently proposing opportunities for significant profit.
The Base infrastructure, assembled by Coinbase using OP Stack, initiated a testing phase in July for developers creating applications and blockchain-based products. The platform, set to officially launch on August 9, faced an early trial of popularity with traders vying for substantial returns. Before the official announcement, the release of the viral meme coin ‘bald (BALD),’ resulted in traders sending over $66 million to the Base blockchain.
While the hype surrounding meme coins like TOSHI spawns promising profits, it’s imperative to remember the inherently volatile nature of these tokens. High hopes of mirroring success stories like Doge and Shiba Inu coins require levels of risk and speculation, rather than the perceived usability of more established tokens. Extreme caution and judgement are necessary while dealing in this segment of the market.
Source: Coindesk
