As meme coins explode on BASE crypto, Coinbase layer-2 has become a hive for new crypto scams, and launch bots appear to be the next big target after a coy rug puller found new loophole.
And as DEX markets have heated amid a frenzy for meme coin tokens, launch bots are emerging as a popular tool for crypto coin sniping – with many retail traders now employing them as part of their trading strategies – to invest in new crypto projects at launch, regardless of the hour.
But these brand new tools remain primitive, and many have no select criteria when investing in new coin launches on DEX markets – meaning they could invest in the next skyrocket or the next scam.
While they can be useful, some have criticized launch bots for artificially boosting demand and leaving even potent projects high and dry – and now, action is being taken against them.
Hahahaha
there's a guy on Base launching the most low-effort shitters, adding .8e of liq, then rugging for ~1e around 10min later
over, and over, and over again.
At first I was pissed but then I realized he's stealing money from launch bots, and it's quite funny pic.twitter.com/hBoPiKjsea
— GK 🗿 (@Grypto_GK) March 21, 2024
A crafty individual on Coinbase‘s Layer 2 network, Base, has become an unlikely hero in the eyes of some in the crypto community, by targeting this vulnerability – the coy crypto trader has been executing a series of rapid “rug pulls,” profiting from liquidity supplied by launch bots.
Manipulating Launch Bots: How The Rug-Pull Scheme Works
One user on X said the unknown individual has been actively launching what he described as “low-effort shitter coins” with minimal liquidity of around 0.8 ETH.
Ten minutes after launching, however, the creator “pulls” all the liquidity from the project – leaving new investors trapped in position, unable to sell their tokens.
(Source)
What makes this case unique is the target – unlike traditional rug pulls which aim to steal from retail investors, this user targets automated trading activity by launch bots, and exploits their vulnerabilities to accrue rapid profit.
As expected, unlike humans, bots lack the intelligence to pick out scams, making them easy “prey” for the rug puller.
So far, the rug puller has raked in roughly 0.2 ETH in profits – and this could be just the start of a much larger trend in meme coin markets.
(BASEScan)
Mixed Reaction: How Will Base Developers React?
Presently, the community is divided on whether this now prolific rug-puller is a bad actor – while some users are concerned about the scam, others find humor in it – with the small-scale of operations hinting at a clever manipulation by a very small player – possibly in the developing world.
Despite the amusement factor, this incident raises questions about the efficacy of launch bots for meme coin traders.
For now, the success of this rug-puller suggests a short-windowed loophole that could be exploited by malicious actors, targeting naive users of emerging trading bot technology.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
