The Unexpected Rise and Fall of a Teen’s Crypto Coin
On November 19, a rather unusual story unfolded in the California home of art adviser Adam Biesk. His teenage son claimed to have made a fortune from a cryptocurrency he created. While initially skeptical, events soon confirmed the boy’s assertions. However, the story took a turn when it became clear that the boy’s actions were not entirely above board.
His son had created the cryptocurrency Gen Z Quant and had profited significantly from its initial launch.
The Launch of Gen Z Quant
At 7:48 pm PT, Biesk’s son released 1 billion units of his new crypto coin, Gen Z Quant. To kickstart his venture, he bought 51 million tokens, approximately 5% of the total supply, for about $350. Then, he started a livestream on Pump.Fun, the site used to launch the coin. As more people tuned in and bought into Gen Z Quant, the coin’s value skyrocketed.
“No way. Holy fuck! Holy fuck!” he exclaimed, as he saw the value of his tokens rise.
Within eight minutes, the value of his tokens had ballooned to almost $30,000, prompting him to cash out. This sudden sell-off caused the coin’s price to plummet.
A Soft Rug Pull
The quick rise and fall of Gen Z Quant is an example of a soft rug pull. This is a strategy where:
- An individual creates a new crypto token
- They promote it online
- They then sell off their entire holdings either swiftly or gradually, causing the coin’s value to sink
While not illegal, this tactic is generally considered ethically dubious in the crypto community. Biesk’s son went on to repeat this strategy with two more coins, im sorry and my dog lucy, netting him over $50,000.
The Backlash
However, this success was not without consequences. Angry traders, feeling they had been conned, began a torrent of abuse. Biesk and his family were doxed, with their names and pictures circulating online. The harassment was so severe that the family’s phone was constantly ringing.
“It was a very frightening situation,” said Biesk.
In an interesting twist, traders continued to buy into Gen Z Quant, driving its price far higher than when Biesk’s son had cashed out. The coin’s total value peaked at $72 million, and the tokens initially held by the teenager were worth over $3 million.
The Aftermath
Even with the trading frenzy dying down, Biesk’s son’s initial tokens are valued at twice the amount he received. Despite the backlash, Biesk draws comparisons between his son’s actions and playing the stock market or winning at a casino.
“In the end, a lot of people made money on his coin. But for us, caught in the middle, there was a lot of emotion,” said Biesk.
As this story shows, the unregulated nature of the memecoin market can lead to unexpected and sometimes distressing events. As Biesk’s son has shown, the potential for quick profits can come with a heavy price.
Source: www.wired.com
