Key facts
- Hunter Biden launched a memecoin called $LAPTOP on Coinbase's Base blockchain.
- The token's launch was announced only a few days prior to trading.
- The $LAPTOP token briefly achieved a fully diluted valuation of over $100 billion.
- Within the first hour of trading, the token's value dropped by more than 99%.
- A significant portion of traders reportedly lost money on the memecoin.
- Pre-launch token allocations were made to market makers and insiders.
Hunter Biden has launched a cryptocurrency memecoin named $LAPTOP, referencing his infamous laptop, on the Coinbase blockchain network Base. The token experienced a volatile debut, briefly surging to a fully diluted valuation exceeding $100 billion before crashing by over 99% within its first hour of trading. This dramatic price collapse surprised many in the crypto market, despite the memecoin's controversial origins and the known risks associated with such launches.
The $LAPTOP coin has a total supply of 1 billion tokens, with Biden and other founders set to receive nearly a third, subject to a six-month lock-up period and a two-year vesting schedule. A notable feature of the project is its plan to allocate 20% of the tokens to investors who lost money on President Trump's $TRUMP token, which has seen significant losses for its retail traders. Some analyses suggest these losses could range from $3.2 billion to $4.5 billion.
The token incorporates a 'burning' mechanism, where up to 30% of its supply could be permanently removed from circulation under specific conditions, such as a Democrat winning the 2028 White House race or bitcoin reaching a new record high. If these events do not occur, the coins are slated for donation to charity. Additionally, some tokens are being set aside for Biden's Substack subscribers and for project expenses, including liquidity and legal costs.
Blockchain analysts observed that the extreme price swings were partly due to a shallow liquidity pool, which can inflate prices rapidly on minimal buying pressure before a swift reversal. Pre-launch allocations to market makers like GSR and Wintermute, as well as to insiders, are common in memecoin launches. Visual analytics from Bubblemaps indicated that approximately 80% of traders lost money on the $LAPTOP token.
Discussion