The world of meme coins is experiencing an unprecedented surge with Solana emerging as a preferred venue for these speculative cryptocurrencies.
In the last 72 hours, crypto traders have funneled approximately $100 million worth of Solana into new Solana meme coins, according to data aggregated by crypto researcher 0xGumshoe.
This influx of funds comes as memecoin founders capitalize on token presales, raising millions for unreleased coins.
Popular Emerging Meme Coins on Solana
Among the notable meme coins that have garnered attention are Book of Meme (BOME), $NAP (NAP), and Nostalgia (NOS).
These projects have adopted a controversial presale model, which has drawn both curiosity and criticism from the crypto community.
The presale mechanism involves investors sending cryptocurrency to a specified wallet address and receiving a distribution of tokens once the coin goes live.
However, there is no guarantee of receiving tokens in return, making presales a breeding ground for fraud and scams.
The recent frenzy surrounding memecoin presales reached its peak with the launch of Book of Meme on March 14.
Created by pseudonymous artist Darkfarms1, the coin initially had a valuation of around $4 million.
However, it skyrocketed by an astonishing 36,000% within 56 hours, reaching a peak market capitalization of $1.45 billion.
Early investors, such as sundayfunday.sol, saw their investments surge exponentially, with one individual turning 420.69 Solana (equivalent to $72,000 at the time) into a staggering $32 million in less than three days.
While the memecoin mania has captivated the crypto space, concerns about the presale model and the risks it poses have emerged.
Ethereum educator Anthony Sassano criticized the practice, stating that sending money to a random wallet address in the hope of receiving tokens is “dumb as hell.”
The absence of guarantees has made presales an attractive avenue for fraudulent schemes, leading to potential losses for unsuspecting investors.
“2 years later and everyone is right back to bidding ponzis. People can do what they want with their money but sending money to a ‘memecoin presale’ that has a 99.9% chance of rugging is actually just dumb as hell.”
2 years later and everyone is right back to bidding ponzis
People can do what they want with their money but sending money to a “memecoin presale” that has a 99.9% chance of rugging is actually just dumb as hell https://t.co/cWL3xjzlE2
— sassal.eth/acc (@sassal0x) March 18, 2024
Solana Emerges as Preferred Blockchain for Meme Coins
Solana, a blockchain platform known for its low transaction costs, has emerged as a preferred venue for trading meme coins.
According to data from CoinGecko, the Solana meme coin sector has surged by 45.9% over the past day and 32.9% over the past week.
The platform has seen a wave of new coins featuring caricatures of public figures like Joe Biden and Donald Trump.
The viral story of a trader turning $260 into nearly half a million dollars with ‘Jeo Boden’ sparked the creation of coins like ‘Doland Tremp’ and ‘Olen Mosk.’
The Solana blockchain’s red-hot meme coin dogwifhat (WIF) has also recently become the fourth-largest meme coin by market capitalization.
This came after community members successfully raised over $690,000 in USDC stablecoin donations to showcase the dogwifhat mascot on the Sphere, a renowned entertainment venue in Las Vegas.
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