Solana Memecoin Investors Lost Millions on Abandoned Projects

A dozen Solana meme coin projects, which collectively raised $26.7 million, were abandoned in less than a month.

Angry crowd of people, not happy with Solana Foundation.
Created by Gabor Kovacs from DailyCoin
  • Several Solana meme coins abruptly ceased operations after raising millions.
  • Losses in just 12 projects amounted to $26 million. 
  • The failures have prompted Solana’s founder to speak out against memecoin presales.

Solana, known for its high-speed blockchain network, has recently been at the center of a significant meme coin frenzy. This led to a rapid rise of several meme coin projects, followed by their subsequent collapse. 

Sponsored

While volatility is synonymous with meme coins, recent findings show that some developers are just taking advantage of their community. Most recently, a dozen meme coin projects were abandoned within a month of their presales, some never being launched at all. 

At Least 12 Solana Meme Coin Abandoned in Just One Month

On Monday, April 21, ZachXBT, a well-known blockchain investigator, uncovered that at least 12 meme coin projects on Solana were abandoned over the past month. These projects cumulatively raised about $26.7 million from investors before developers took off with the money. 

One notable example highlighted in his findings was “I like this coin” (LIKE), which saw its market value crash by over 90% within just eight hours of its launch, despite an initial market capitalization of $577 million.

The collapse of various Solana meme coin projects has sparked a flurry of reactions across social media, revealing the community’s mixed feelings towards these speculative ventures. Notably, ZachXBT and others highlighted some of the more absurd aspects of the meme coin frenzy. 

Solana Founder: Don’t Invest in Memecoin Presales

For instance, ZachXBT humorously pointed out projects that never launched, including one ironically without a token name. Another user pointed out a project, @condomonsol, which raised 4000 SOL ($560k), and never even launched. The project’s X page has since been abandoned. 

Sponsored

Additionally, another user highlighted the case of “Fake Jared,” an X account impersonating the former Subway spokesperson and convicted sex offender Jared Fogle. “Fake Jared” managed to raise 5,000 SOL, before abandoning his project.

https://twitter.com/aeyakovenko/status/1782138710332760296

Critics of the meme coin frenzy include Solana founder Anatoly Yakovenko, who expressed skepticism about the fundamental concept of meme coin presales. In reply to ZachXBT’s post, Yakovenko questioned the rationale behind preselling memes, which are more appropriate for tech-focused projects. 

On the Flipside

  • The meme coin frenzy has brought technical strains to the Solana blockchain. The influx of high-volume transactions associated with meme coins led to network congestion, contributing to a high failure rate of transactions. 
  • One byproduct of the recent meme coin frenzy was the proliferation of meme coins with overtly racist themes.  

Why This Matters

The rise and abrupt abandonment of meme coin projects could prompt more stringent regulatory measures and potentially drive a more cautious approach to investment in speculative assets. 

Read more about racist meme coins on Solana: 
Racist Solana Memecoins: Freedom Isn’t a Free-for-All

Read more about Base’s surge, also driven by meme coins: 
Base Reaches Record Deployers, Surpasses Ethereum in Volume

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.