Over $100M Lost in Frauds and Scams as Solana-Based Memecoin Craze Takes a Sinister Twist
Criminals are capitalizing on the popularity of meme tokens on the Solana blockchain to deceive investors and swindle them out of their money. Many of these meme tokens lack real-world utility and are highly speculative, posing a risk of potential losses for investors who are hoping for quick profits. Despite the impressive trade volume on Solana driven by meme tokens, a significant portion of it may be attributed to scams.
While Solana enjoys the rise of meme tokens, fraudsters are taking advantage of this trend to manipulate unsuspecting buyers in the crypto market. Crypto investigator ZachXBT has once again sounded the alarm, revealing a troubling pattern of con artists exploiting meme tokens on Solana to defraud the public and take advantage of unsuspecting investors.
You might be wondering, “What’s next?” Well, keep reading to find out.
The emergence of meme coins on Solana has been nothing short of seismic. The Total Value Locked (TVL) on the Solana blockchain has experienced a surge, largely driven by these tokens. However, many of them lack practical applications and exist mainly for speculative purposes.
The fact that most investors perceive these tokens as dubious does not deter the significant number of individuals who are enticed by the promise of quick wealth before fully comprehending the associated risks.
ZachXBT, the diligent investigator, has uncovered a series of scams that exploit the meme token craze on Solana. His findings reveal a shocking amount of around 655,000 SOLs, equivalent to $122.5 million, that have been siphoned off through 27 presales, many of which were elaborate scams.
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Solana-Based Meme Coins, WIF, BOME and BONK Face Sell-off
Solana, once known as a hub of innovation, has unfortunately become a breeding ground for scammers within its ecosystem. The trade volume within this realm far surpasses that of the top decentralized exchanges (DEXs) on Ethereum, exceeding them by 200%. Leading DEXs on Solana, such as Raydium, Jupiter, and Orca, have recorded a total transaction volume of over $2.4 billion in just 24 hours, overshadowing UniSwap’s $1.3 billion volume in the same period.
As meme tokens continue to proliferate on Solana, it is crucial for investors to remain vigilant. Staying alert amidst the frenzy is essential in order to protect oneself from fraudsters and safeguard one’s interests against those seeking to exploit the hype.
Did You Know?
Memecoin Mania: Solana (SOL) Flips Ethereum in Trading Volume
As Solana embarks on its journey amid the meme coin frenzy, the challenge is clear: to embrace innovation while effectively guarding against deceit.
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