Over the past month, multiple meme coin initiatives based on Solana have experienced “exit scams,” resulting in a significant loss for investors totalling approximately $26.7 million.
The creators of Solana have frequently advised against investing in questionable projects, but unfortunately, some well-known figures are still engaging in such behavior with the intention of deceiving investors.
A Slew Of Abandoned Projects
Solana is recognized for its swift blockchain technology. Recently, however, it has gained attention for something other than its speed, as the network became the center of an unexpected meme coin craze. During this trend, several successful projects emerged, making some individuals millionaires almost overnight. In contrast to Ethereum, Solana saw increased network activity. Nevertheless, detractors argued that the meme coin bubble didn’t add much value to the network and caused considerable congestion. Furthermore, the influx of meme coin projects attracted unscrupulous scammers who swindled investors out of over $26 million through fraudulent presales. Crypto sleuth ZachXBT brought this concerning situation to light on social media, cautioning potential investors about the substantial losses they might incur.
Within just a month, more than a dozen meme coins from the Solana presale have been completely abandoned, leaving behind over $26.7 million raised in Solana (180,650 SOL) unutilized. This startling amount underscores the gravity of the situation, as many projects have failed to keep their promises after securing substantial funds.
He also published a list of founders, urging users to avoid any projects launched by them.
Projects Succumbing To Rug Pulls
ZachXBT’s exploration brought to light the extent of the issue that affected investors. In March, he had mentioned his findings on this matter.
Approximately $149.2 million in SOL (796,000 units) was amassed by SOL during presales. Yet, despite this significant financial achievement, numerous projects using SOL have unfortunately fallen victim to “rug pulls,” resulting in investors being left without any returns on their investments.
He stated that he would avoid such projects and urged the larger crypto community to do the same. ZachXBT gave an example of a meme coin called URF, promoted by Bryce Hall, a popular influencer. He stated that URF managed to raise 2400 SOL, valued at around $450,000 during its presale. However, the team behind the meme coin disappeared hours after launch, with their social media handles rendered inactive.
The team vanished within a day of their launch, and there’s been no signs of life on their social media platforms since March 26th.
ZachXBT pointed out that rather than meeting their investor responsibilities, URF team reportedly utilized presale funds for meme coin trading, exacerbating investors’ losses. This behavior has sparked concerns within the crypto community about transparency and accountability in meme coin presales on Solana.
Solana Co-Founders Caution Investors
Anatoly Yakovenko and Raj Gokal, the co-founders of Solana, have frequently advised against investing in unsolicited meme coin presales on their platform. Recent findings by ZachXBT uncovered that the LIKE meme coin presale resulted in significant losses for investors, amounting to approximately 52,220 SOL or around $8.1 million based on current market prices.
A new meme coin called MOONKE by RockyXBT resulted in a loss of approximately $5.81 million or 37,470 SOL for investors. Additionally, the presales of ten other meme coins on the Solana blockchain caused investors to lose roughly $14.1 million or 90,961 SOL. ZachXBT pointed out that most of these meme coins hadn’t yet published comprehensive whitepapers.
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2024-04-23 12:05