In a recent report, crypto investigator ZachXBT found that nearly 12 Solana presale meme coins have been “completely abandoned” within the past month after collectively raising 180,650 SOL, equivalent to approximately $26.7 million. Despite the significant fundraising, many of these meme coin projects have experienced sharp declines in value post-launch, with one project failing to launch a token. A post dated March 19 revealed insights on 27 meme coin presales on Solana since March 12, estimating that a total of 655,000 SOL, equivalent to $122.5 million at the time, had been raised during these presales.
ZachXBT highlighted 12 Solana meme coin projects in a post dated April 21 that utilized the controversial presale method, with many experiencing large declines in value since their launch. One project in particular, “I like this coin,” raised 52,220 SOL tokens (equivalent to $7.7 million) and had a market capitalization of $577 million at launch. However, the value of the coin plummeted rapidly, dropping over 90% in the first eight hours and experiencing a 99.2% decrease from its initial price. Other abandoned presale projects included MOONKE, FROG, and several others where either the value of the coins dropped significantly post-launch or the tokens were never even launched, leading to investor losses.
A recent study by cybersecurity firm Blockaid revealed concerning trends in Solana presale tokens launched between November 2023 and February 2024. The study found that 50% of these presale tokens were identified as malicious, with scammers taking advantage of the popularity of legitimate meme coins. Individuals like Jared_eth and Bluekirbyftm were mentioned as being involved in scam activities, with incidents of developers burning entire presale allocations due to errors. The rise in scammer activity coincided with the increased adoption of presale tokens during February and March, driven by the popularity of legitimate meme coins.
Market enthusiasm for meme coins has seen a decline in recent weeks, with several Solana-based tokens experiencing significant drops in value, including dogwifhat (WIF) declining by over 40%. This downturn in sentiment may reflect growing caution among investors following the proliferation of scam tokens and fraudulent activities within the ecosystem. Despite this, leading Solana-based meme coins like BONK and MEW have seen substantial surges in value over the past week, with BONK growing by over 33% and MEW surging by more than 15% in the last 7 days, indicating that investors are still interested in some meme coins.
Overall, the study and reports on Solana presale meme coins highlight the risks and challenges associated with investing in cryptocurrencies, particularly in the increasingly popular meme coin space. Investors need to exercise caution and conduct thorough research before investing in presale or meme coin projects to avoid falling victim to scams or losing funds in projects that may be abandoned post-launch. The prevalence of scam activities in the cryptocurrency space underscores the need for regulatory oversight and investor education to protect market participants and prevent fraudulent activities from harming the industry’s reputation.
