In a recent exposé, blockchain investigator ZachXBT unveiled that 12 Solana-based meme coin projects have been abandoned, leading to a staggering $26.7 million loss for investors.
These meme coins were initially promoted through presales, promising substantial returns. However, they soon left their backers with tokens that became nearly worthless.
How Crypto Founders Stole $26.7 Million Through Presales
The most notorious of these projects was “I like this coin,” with the ticker symbol – LIKE. It attracted approximately $7.8 million in Solana (SOL) from investors.
According to data from DEXTools, the coin’s value plummeted by over 50% since the launch. Moreover, there has been minimum communication from the creators.
Similarly, the MOONKE token faced a catastrophic decline. It crashed by more than 80% soon after its release. These cases illustrate the risky nature of investing in hyped crypto ventures.
“Would avoid any future projects launched by these founders,” on-chain sleuth ZachXBT said.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
Furthermore, a study by cybersecurity firm Blockaid revealed that at least 50% of presale tokens on the Solana blockchain from November 2023 to February 2024 were malicious. Blockaid’s co-founder, Ido Ben-Natan, attributed this surge in fraudulent activities to the increased popularity of presale tokens.
Scammers have exploited investor FOMO (fear of missing out) by mimicking legitimate transactions and creating sophisticated fake websites.
“Firstly, the exponential increase in pre-sale token uptake in February and March, fueled by the popularity of legitimate meme coins, has provided fertile ground for scammers,” Ben-Natan explained.
Individuals known as Jared_eth and Bluekirbyftm have been identified as some of the culprits behind these operations.
Additionally, the Solana blockchain has seen the rise of meme coins with offensive and racist themes, which has led to severe backlash from the crypto community. These developments have intensified calls for stricter regulations and enhanced security protocols to safeguard investors from these increasingly complex scams.
Read more: 11 Best Solana Meme Coins to Watch in 2024
Investors should exercise increased caution and due diligence. It is crucial to look for projects with transparent, accountable leadership and verifiable support. As the crypto ecosystem continues to evolve, the need for robust protective measures and informed investment strategies becomes more apparent.
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