Solana Memecoin Hits $320 Trillion Market Cap, But There’s A Catch

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As a researcher, I’ve seen my fair share of market cycles and the hype surrounding new projects can be both exhilarating and dangerous. The Solana memecoin frenzy is no exception, and it’s important to approach these investments with caution.

Many investors have struck it rich or missed out during the meme coin buzz surrounding Solana, with traders now on the hunt for fresh projects potentially set to become the next big thing as the market readies itself for another accumulation stage.

Solana Memecoins’ New Strike

I’ve observed that memecoins have dominated the conversation during this bull market. Consequently, many individuals seeking substantial returns have poured their investments into newly launched projects in this space. While some have struck it rich by trading the week’s top performers, others have suffered losses as they tried to jump on the bandwagon.

Memcoins built on the Solana blockchain have gained significant popularity, with standouts like Dogwifhat (WIF) and Cat in a Dog’s World (MEW) being particularly notable. Yet, not every project within this category has garnered widespread acceptance and backing for their respective tokens.

Many Solana memcoins introduced over the past two months have disappointed investors, with the most recent being Bonk Killer (BONKKILLER). This new coin caused a stir on Monday for all the wrong reasons.

A few hours after its launch, the value of the token soared past the $100 trillion market capitalization, an achievement that would have made crypto history. However, it was later revealed that this remarkable milestone was actually the result of a honeypot scam.

Solana Memecoin Hits $320 Trillion Market Cap, But There’s A Catch

According to SolanaFloor’s report, the memecoin in question is a fraudulent token that entices investors with promises of substantial returns. However, these investors later discovered they were unable to transfer their tokens once the project’s creator enabled the “freeze authority.”

As a crypto investor, I can tell you that by not selling their token during that action, the creator effectively kept it in circulation, leading to a significant increase in the token’s market capitalization. According to Birdeye’s latest data, the Solana-memecoin boasts a market cap of approximately $318 trillion at present.

It’s important to keep in mind that the value of the token doesn’t correspond to the figure indicated in the metric. As one user of X noted, the token holds no value if you can’t exchange it for something else.

When you buy but can’t sell. #bonkkiller

— Bull.BnB (@bull_bnb) April 30, 2024

Half A Million Stolen By Memecoin Scammer

Regrettably, the creator failed to employ the freezing function to enhance the market value of the tokens for investors. Instead, a fraudster exploited this feature and pilfered approximately $450,000 worth of BONKKILLER and SOL tokens.

Approximately 90.8% of the entire supply is controlled by the creator, who transferred out 30,500 units of BONKILLER and 1,561 units of SOL tokens, equivalent to approximately $420,000 based on current market values. As per Birdeye’s latest update, each BONKILLER token is worth around $32.81.

Recent development: The suspectedly fraudulent Memecoin project on Solana, referred to as BONKKILLER, has extracted more than 3,000 dollars worth of SOL liquidity since halting token transactions for users.
— SolanaFloor | Powered by Step Finance (@SolanaFloor) April 30, 2024

Despite the community’s caution, certain investors persisted in purchasing the project within the past 12 hours. They collectively invested nearly $40,000 in the token. However, as some users of X have noted, the inflated market capitalization could potentially deceive novice investors into buying this memecoin.

The rising number of recently launched projects that have turned out to be scams is concerning, as noted in a report by NewsBTC. Over the past month, approximately $27 million has disappeared from twelve such projects, with their creators abandoning them.

In the end, this occurrence underscores the significance of thoroughly investigating a project’s history and pondering deeply if the potential rewards justify the hazards.

Solana Memecoin Hits $320 Trillion Market Cap, But There’s A Catch

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2024-04-30 23:10