The crypto-verse’s appeal lies in its promise of rapid wealth and innovations. But this comes with its own set of risks. The Solana ecosystem in particular has shed light on the same but concerning meme coins and presales. A recent investigation by ZachXBT, a blockchain expert revealed the downfall of 12 Solana presale meme coins.
According to the expert, a dozen meme coins were “completely abandoned” throughout the last 30 days leaving investors empty-handed. Even more astounding, these projects collectively raised a whopping $26.7 million before fading into obscurity.
Solana’s Meme Coin MeltdownAlso Read: Solana (SOL) Up 5% as BTC Halving Could Prompt Surge to $175
The Presale Paradox: Lack of Transparency and Rug Pulls
Most of these meme coins have been launched through presales. This is often viewed as a contentious method that is often criticized for its opacity and vulnerability to rug pulls. For instance, ‘I like this coin’ [LIKE] gathered a whopping 52,220 Solana tokens worth $7.7 million. However, it dipped down by 90% following its launch. It currently stands as a mere shadow of its former self.
Similarly, MOONKE, an asset rolled out by RockyXBT suffered a comparable fate. The asset lost 99% of its value right after its debut. Other ventures followed suit while some failed to even roll out a token despite significant fundraising.
The Volatile World of Meme Coins
These incidents highlight the erratic nature of meme coins. Time and again, the major upticks and drastic dips of these assets have proved their volatile nature. Excitement can swiftly turn to disappointment in this arena. However, the Solana ecosystem though renowned for its speed and scalability, has become a hotbed for speculative endeavors, attracting opportunists as well as enthusiasts. The latest series of incidents extends beyond monetary losses. It erodes the overall trust in the market while reinforcing its image as a haven for scams.
Also Read: How High Will Solana SOL Peak Post-Bitcoin Halving?