- The cryptocurrency market is once again in turmoil with an unprecedented event.
- The founder of the meme coin Rizz (RIZZ) faced a challenging situation as the coin’s value plummeted by 90% during a live broadcast.
- This significant event underlines the inherent risks in the crypto space, emphasizing the importance of thorough research for investors.
Discover the dramatic collapse of the Rizz (RIZZ) meme coin, highlighting the volatility and risks in the cryptocurrency market.
A Turbulent Time for the Meme Coin
The cryptocurrency sector has recently witnessed some extraordinary occurrences. One such event involves the meme coin Rizz (RIZZ) and its founder, who found himself in a precarious situation during a live broadcast when the coin’s value suddenly dropped by 90%. This incident serves as a stark reminder of the volatility in the crypto market, urging investors to exercise caution and conduct comprehensive research before committing their funds. Bubblemaps CEO Nicolas Vaiman had the opportunity to participate in a Space session on the X platform prior to the collapse, closely monitoring the developments. The Bubblemaps team later described the incident as ‘This Space is wild!’ in a post on the X platform.
The Incident Explained
According to Bubblemaps, Rizz was launched on the Solana platform on June 18th. The team mentioned that the founder was invited to present the token during a live Space session due to its “substantial trading volume of $8 million”. However, things took an unexpected turn. Bubblemaps sought information about certain ‘bubbles’ observed in the coin’s bubble map, which seemed to indicate that a small group of accounts held a disproportionately large amount of tokens. Additionally, it was noted that the team controlled over 80% of the token supply.
The Founder’s Unexpected Appearance
Early transaction analysis by Bubblemaps showed that most of the sales came from ‘snipe’ investors who managed to purchase tokens in the initial minutes of the launch. Vaiman later revealed that he was not originally invited to the Space session but joined unexpectedly. During the event, the founder appeared emotionally distressed, prompting Vaiman to feel uneasy about asking questions. “When the price crashed, the Rizz founder seemed emotional, and I felt awkward asking questions – at one point, I even thought he might cry,” Vaiman recounted. Another source claimed that the founder, known as ‘Rick’, was not actually in control, but rather a group of Singaporean developers notorious for creating meme coins and executing ‘rug pulls’ orchestrated the entire operation.
As reported by CoinOtag, the term ‘rug pull’ refers to a fraudulent maneuver where cryptocurrency developers suddenly sell off a significant portion of their token supply, effectively seizing investor funds. Vaiman elaborated:
These developers seem to run the show by acquiring tokens from initial distributing wallets and sniping tokens with new wallets funded via centralized exchanges. This strategy allows them to control a sizeable chunk of the supply. Although tracking these wallets can be challenging, timing analysis often uncovers their early sniping connections.
Conclusion
The dramatic incident involving the Rizz (RIZZ) meme coin underscores the unpredictable nature of the cryptocurrency market. It serves as a critical reminder for investors to remain vigilant, conduct thorough research, and be aware of potential risks. Moving forward, the crypto community will likely continue to witness such astonishing events, highlighting the need for increased transparency and diligence.
