Cryptocurrency

how a token that parody the DeFi mobilized millions of dollars

Key facts:

A developer of DeFi for Consensys designed the sketch of an application to create tokens ERC-20.

MEME was created as a parody, but it reached a trading volume of USD 1.2 million.

What started out as the sketch of a simple interface to create tokens of ERC-20, finished in the launch of a tab baptized as a MEME. After becoming a viral and unleash the rage among the enthusiasts of the DeFi, reached $ 1.2 million in volume of trade in a period of hours.

Jordan Lyall, developer of Consensys to finance decentralized (DeFi), commented with Breaking News the history behind this event in which hundreds of investors drove a tab you just created up to raise his price as much as possible.

It all started with the concept of ‘Degenerator’, a joke without pretending to transcend rather than to parody the current state of the markets DeFi. Degenerator was the name Lyall gave a sketch of an application that would “create a new project DeFi in less than 5 minutes”, mixing the characteristics of protocols such as Compound, Synthetix and AAVE.

Lyall published on the social network Twitter this parody to point to the “degeneration” of the projects Defined, each time more numerous, risky and that attract huge amounts of funding despite being created essentially out of nothing.

The tweet became viral and Lyall began to receive requests to launch the project. “I asked for the web address of the project, the Github repository,” he said to Breaking News.

After becoming a viral the tweet, Lyall was created by a group Telegram that the time has 977 participants, who decided from the name of the tab, to how to broadcast. You even decided to choose a pineapple as a pet project officer, parodying his time to the sweet potatoes of YAM, a project which recently got stuck 750 thousand dollars for an error in its contract with smart.

Create the group of Telegram to continue with the joke, without expectations. But I wanted to have a place where people could help build the product, communicate, to organize. But it quickly created a snowball effect and everyone was excited about what could be done with this idea. In a matter of minutes, someone had the idea to create the tab, and the community decided to call $MEME.

Jordan Lyall, developer.

From the first tweet until the release of the token took about 2 and a half hours, he says. It was soon included in Uniswap and Coingecko, reaching a value of 40 dollars and an exchange volume that exceeded the million dollars.

Although it began as a simple parody on Twitter, $MEME managed to attract the attention of developers. Source: Degenerator ($MEME ) / Twitter.com

However, at the time of writing this note, the token has a price of around $ 15, according to Coingecko, and its trading volume fell equally, testing the point on the volatility (and financial instability) of the project DeFi.

Came the whale: the end of the fever MEME at DeFi

Lyall claims not to have knowledge of who may have issued the tab, though it surely is one of the participants in the group of Telegram that the developer manages. The contract of issuance of this token consumed about 400 dollars in gas, the name given to the commissions paid for transactions of Ethereum, in a time where commissions of this platform are for the heavens.

Likewise said to have been contacted by developers who have the genuine will to develop the application Degenerator, as a platform to create new projects DeFi inspired by the already existing.

When asked about the possibility that the creators of the token may have made huge amounts of money. Lyall says that perhaps not, although it is possible in scenarios where MEME to become the next Dogecoin, endure over time and increase its price.

As another of the scenarios in which their creators could get rich, it considers that this would happen if around MEME is created a real product with some utility, although considered unlikely.

Also think that the distribution of the token was made in a legitimate way. The developer says that in the group of Telegram created a spreadsheet where each of the participants could leave their address Ethereum to receive the free tab. But faced with the possibility of perpetrara a type attack Sybil, was created a second form where besides the addresses, the participants put their user name in Telegram, to carry a control.

In your opinion, Lyall believes that the distribution was more fair that many projects preminados or that provide the majority of the chips to its founders and investors. “Despite the nature of parody and all the nonsense surrounding this event, there were no bad actors or events that you regret,” he said.

However, points that then whales of trading and the actors negative joined the group and in his opinion, destabilized the conversation, but it clarifies that, in principle, all the participants had honest intentions.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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