The CEO of CryptoQuant cautions that meme coins may impede fundamental crypto developments.
Areyoustupid is Solana’s words. Memecoin enthusiasm is highlighted by Sol’s presale, which brings in 437.27 SOL.
With the craze for Solana meme coins, scams increase, exposing weaknesses in the business.
Ki Young Ju, CEO of CryptoQuant, provider of market statistics and on-chain crypto sales, voiced concerns about rising meme coin presales. Solana’s transaction fees and on-chain volume surged, attributed to meme coins like “Slerf” and “Are you stupid.sol.”
Memecoins’ Effect on the Crypto Industry
Ki Young Ju elaborated on the potential effects of meme coins on the larger cryptocurrency ecosystem. Asserting that meme coins could overshadow the efforts of committed teams working on legitimate projects to advance the industry, the CryptoQuant CEO critiques the surge in meme coin presales on Solana. Concerning the 2018 initial coin offering (ICO) bubble, Ju emphasized the perils of cheap money tactics and their inability to foster an evolution of the sector as a whole.
Some say memecoins are a global lottery system that attracts new users to the crypto industry.
Would you risk losing money to enter the crypto space? Moreover, considering the “shitcoins” from the 2018 ICOs, which was basically a casino, did they contribute any societal value?
— Ki Young Ju (@ki_young_ju) March 18, 2024
Ju questioned the worth and social impact of meme coins after hearing specific claims that they function as a sort of “global lottery” that attracts new users. She discussed the parallels between meme coins and the highly speculative and frequently unsuccessful 2018 initial coin offerings (ICOs).
Increased Memecoin Activity in Solana
Memecoin presale and trading activity spiked in Solana, pushing the blockchain’s on-chain volume and transaction fees to all-time highs. Remarkably, 420.69 SOL ($83,717) was made on a single transaction for the “are you stupid. sol” presale; over 437.27 SOL, or more than $87,000, were raised.
Despite unintentionally incinerating $10 million from presale funds, another meme coin, “Slerf,” managed to achieve a market capitalization exceeding $234 million. These events have raised awareness of the memecoin speculative frenzy and boosted Solana’s network activity and operational expenses.
Disputations Regarding Memecoin Presale
There have been several difficulties, disputes, and a growing interest in memecoin presales. For example, with a specific project in mind, artist Kero started a presale that drew about 55,000 SOL ($10.66 million). This and related incidents have raised concerns over the veracity and motivations underlying several memecoin presales.
Community Alert: Yesterday 0xNibba stole 6 figs with a presale and is now back as @richmoneysol attempting to do another presale scam.
Old theft address
8iZYbAhpEYmp6whb4pCWnNhQYr32dg4R62Z9sVhsBg6w pic.twitter.com/GQWwo9lXw1— ZachXBT (@zachxbt) March 18, 2024
— March 18, 2024, ZachXBT (@zachxbt)
Furthermore, there have been instances of fraud in the community. Notable individuals such as 2D detective ZachXBT, who has frequently brought attention to theft and scam efforts in the Solana memecoin sector, have reported and looked into significant scams.
