Bitcoin Pizza Day was speculated to be a celebration of crypto utility, however as a substitute it was dampened by of a flurry of latest pizza-themed memecoins that swindled hundreds of {dollars} from traders.

Each Could 22, many crypto and Bitcoin devoted have a good time the 2010 anniversary of when a pc developer named Laszlo Hanyecz purchased two pizzas for 10,000 Bitcoin, a sum price now greater than $260 million.

Whereas many crypto customers (and a few firm executives) this 12 months celebrated and shared jokes on Crypto Twitter, others ginned up memecoins that gathered tons of of hundreds of {dollars} in market capitalization earlier than rugging traders.

In whole, 4 tokens—BTCPizza, BPizza, PizzaDay, and EthPizza—that every one have been created inside the previous three days have gathered greater than $300,000 in market cap, in keeping with Dextools. It’s attainable there have been extra.

The crew or individual behind BPizza, the brand new memecoin with the second-largest funding whole, rapidly modified its promote tax, to 100%, which means it might be unfeasible for traders to promote it. In the meantime, EthPizza turned off transfers and gross sales for the token shortly after accumulating a market cap of $38,000.

The coin with the best market cap, BTCPizza, was nonetheless buying and selling as of Wednesday afternoon at a market cap of practically $200,000. The token’s worth was down 16% from its excessive on Tuesday.

Memecoins are extremely unstable and are backed by nothing however hype. They don’t have any sensible use and very often are scams for unsuspecting traders in search of the following large factor.  

One of many newest, and maybe most shocking memecoin moons, got here from Pepe coin, which rapidly peaked at market cap of $1.6 billion earlier than plummeting. The coin nonetheless had a market cap of greater than $250 million on Wednesday, in keeping with CoinMarketCap.