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This Base Chain Memecoin Tanked 34% Following News of Insiders’ Big Bags

Based Brett ($BRETT) loses 34% of its value as rumours spread that insiders hold a significant portion of the token’s circulating supply.

The past 24 hours have been a rollercoaster for Based Brett, the leading memecoin built on the Coinbase-affiliated Base blockchain. Earlier this week, the token ranked among the trending memecoins. Today, its value nosedived to a trading price of $0.0387 before a rebound occurred. Rumors about insiders holding large $BRETT portfolios did not sit well with the community.

What is Based Brett?

Based Brett is a memecoin launched in March 2024. The meme token lends its brand and IP from Brett, the best friend of Pepe the Frog in the comics, Boy’s Club. The American artist and illustrator Matt Furie created the characters in the comics in 2005.

Despite being new in the memecoin market, $BRETT climbed to the top 10 memecoins by market cap ranking. The token also saw an all-time high of $0.08 earlier this month.

However, these high metrics have taken a downward spiral following news of insiders having robust $BRETT holdings. At the time of writing, the memecoin’s market cap is $366 million, representing a 37% drop from earlier this week.

Notably, the token’s price has already rebounded to $0.043 as shown in the chart below.

Source: CoinStats

A Rug Pull In View?

When a small circle of individuals hold large portions of a cryptocurrency, any sell action from these entities can instantly plunge the crypto’s value. The matter becomes more alarming if these big bag holders are insiders of the crypto project under consideration. Such an action can cause onlookers to presume that a rug pull may occur at any time.

Several crypto community members on X have expressed their concerns over the possibility that the memecoin may rug $BRETT holders. Hence, the sell-off from users.

Meanwhile, the $BRETT founder team has not given any public information concerning the matter.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.