Some members of the Solana community began to speak out against the meme coin presale. This allows cryptocurrency traders to purchase the next BONK, WIF, or BOME.
middle billions of dollars Over the past three months, several Solana-based meme coins have exploded. This is a phenomenon that has helped the explosive growth of blockchain. return to fame—Numerous cryptocurrency influencers have begun to capitalize on the frenzied FOMO atmosphere by promising early, discounted allocations ahead of the release of certain meme coins to traders who send SOL to the promoter’s wallet.
When cryptocurrency users send funds to such wallets, there is no guarantee that they will receive anything in return. There is often no way to verify that the person requesting funds is an actual developer, or even if an actual meme coin is about to be released.
However, despite the incredible lack of accountability that resulted from the meme coin pre-sale, cryptocurrency users had huge amounts of money thrown at them. According to pseudonymous on-chain detective ZachXBT, it reached nearly $150 million last week alone, and that’s only on Solana.
According to analysts, since March 12, Solana users have been sending messages like this: 796,000SOL—Equivalent to approximately $149.2 million When writing—Only 33 meme coin presale addresses advertised on Twitter. Some of these pre-sales have turned out to be outright scams.
In response to ZachXBT’s findings, Solana users expressed their displeasure over the surge in meme coin pre-sales on the chain and offered theories about what lies behind the highly questionable practice.
“Stop doing this,” Solana co-founder Anatoly Yakovenko said bluntly. scold A Solana DeFi user’s response to ZachXBT’s findings.
Others have warned that this phenomenon could have lasting negative effects beyond those related to pre-sale planning.
“I don’t see how this won’t have serious consequences for the DeFi space as a whole.” Cryptocurrency influencer Pennski wrote Tuesday on Twitter. “The SEC cannot sit back and allow this to continue.”
Hints of potential legal implications for DeFi sparked by pre-sale shenanigans at the hands of the U.S. Securities and Exchange Commission (SEC) echoed fears of other legal uncertainties arising from numerous meme coin pre-sales.
In a scenario that has become all too common since pre-sales spread, Solana-based developer Over $30 million SOL was raised in a matter of minutes yesterday for the yet-to-be-launched meme coin. Questions were raised when the developer moved those funds to Binance and started trading them for stablecoins.
Several cryptocurrency users have pointed out that the mere act of converting tens of millions of dollars worth of one cryptocurrency to another through a centralized exchange like Binance will almost certainly land the project into a tax reporting nightmare, regardless of the developer’s intentions. .
Plus it’s a taxable event for you lmfao
— CR1337 (@cryptonator1337) March 19, 2024
Others have questioned the backgrounds of several meme coin presellers featured on Solana, who appear to have much more experience promoting NFTs on Ethereum than developing Solana-based DeFi projects.
But for now, the meme coin pre-sale trend continues unabated, despite all the possible red flags in terms of fraud, risk, and legality. After posting a detailed analysis of the topic earlier Tuesday, ZachXBT update What he discovered just a few hours later was that DeFi users had invested an additional $27 million in the Solana presale that he had missed out on.
Editor: Andrew Hayward