Rebase or Rug Pull?

Many people have heard what a rebase is but not how it works. Every day when a token like $ATH $AMPL $GRPL $BASE etc. rebases, the price and the supply are adjusted in order to make the chart look attractive to buyers.

Supply is inflated based on the peg price.

The supply is then airdropped to the people who were holding before the rebase.

Holders token COUNT goes up, but since there’s more supply the VALUE of those tokens stay the same.

The big red candle on the chart makes it look like the price is low and new buyers come in to buy the dip - these new buys increase the value of everyone’s tokens.

Example Pictured of $ATH

Example if team says Peg Price is $0.10.

If the chart price is $1 before the rebase the supply is increased 10x to make the price $0.10 after the rebase.

If you had had 10 tokens worth $100 total your tokens are still worth $100 after the rebase, but now you’ll have 100 tokens worth $1 instead of 10 tokens worth $100.

Credits go to Drayco Malformed.