BRETT, a Base meme coin, drops 47% amid FUD that insiders hold majority of supply at launch

Source Fxstreet
  • Base meme coin BRETT has dropped nearly 50% from its peak price and 34% in 24 hours.
  • Reports of insiders holding over 81% of supply at launch provoked sell-off.
  • BRETT market exploded from $2 million to $850 million in record time but has dropped to $357 million since.

Meme coins have proven to be a global selling point for speculative liquidity. Their accessibility remains one of the sector’s greatest strengths, which explains community engagement. The latest engagement is around Brett (BRETT), a Base meme coin making headlines with negative publicity.

Also Read: Meme coin madness returns after Bitcoin halving concludes

BRETT drops 47% from ATH amid frothing FUD

BRETT is one the latest entrants in the meme coin space, with one of the insiders, @CrashiusClay69 on X, saying that they first shared the token at a market capitalization of $2 million, before it quickly skyrocketed to $850 million. This means that traders who bought in early enjoyed a 400X performance.

However, the market capitalization has crashed by over $500 million to $357 million as of 19:50 GMT, ascribed to negative publicity. Brett price has also dropped 47% from its all-time high. Specifically, sellers pulled the trigger following reports that insiders hold over 81% of BRETT tokens.

The allegation, which inspired FUD, is that Crash and his friends hold over 80% of the supply of BRETT tokens. Reportedly, these insiders had never revealed the 81% until the news came out, according to @CeasarsCalls on X, who added that this made it seem like their first buys came at much higher market capitalizations when in a real sense they entered the project much earlier,  possibly at launch.

It is said that some insiders even made nearly 1,600 ETH for tokens they got for marketing that were bought during the whitelist phase.

The bets are split, with some defending BRETT and Crash, one of the said insiders, while others push that the team tends to shill coins before dumping on them in the future. Notably, MEXC and BYBIT exchanges have added leverage to BRETT.

It is also worth mentioning that BRETT has become one of the most sensational meme coins in history. Specifically, it has set a record on Base, a fairly new network, with hundreds of millions in market capitalization and even nicked 150,000 in terms of holders.

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

At the time of writing, BRETT is trading for $0.0400

BRETT/USDT 1-day chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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