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Memecoins Tumble After Solana Co-Founder Urges Investors to Stop Buying
- Solana momentarily broke past USD $200K, capping off a month of more than 50% gains.
- Memecoins have been a huge factor in Solana’s growth spurt, with tokens like Dogwifhat, Bonk and Book of Meme seeing monstrous price increases.
- However, Solana founder Anatoly Yakovenko made his opinion on the memecoin frenzy clear, telling investors to stop participating in memecoin pre-sales.
Nobody likes being told what to do – but when it’s the founder of one of the crypto world’s biggest projects, perhaps it’s best to take note and listen.
Related: Ethereum vs Solana: Battle of the Layer 1 Giants
Solana has enjoyed an inspiring month, with its native token SOL breaching the USD $200 (AUD $306) mark, albeit briefly. Much of these 50%+ gains have come on the back of increased ecosystem activity and improved performance, but there’s also been a far less…righteous… rationale for Solana’s surge. That’s right, the most polarising topic in all of crypto – meme coins – are partially responsible for Solana’s hot streak. And founder Anatoly Yakovenko has had enough.
Millions of SOL Spent on Memecoin Pre-Sales
It’s easy to see why investors get caught up in memecoins. These tokens go up like no other – popular options like Dogecoin, Pepe and Shiba Inu have experienced astronomical gains since inception. So it makes sense that investors prowl the crypto market for new memecoins, looking to strike gold on the next big thing. Of course, this method of investment involves no fundamental research or financial philosophy – it’s the equivalent of throwing [redacted] at a wall and seeing what sticks.
According to social media analyst ZachXBT, on-chain metrics demonstrate that users have sent 655K SOL, or USD $122.5M (AUD $187.6M), to various Twitter users to gain access to pre-sales. The biggest of these recipients is visual artist 0xDekadente, who has raised over 170K SOL for his memecoin project – although he’s having trouble with the airdrop due to network congestion.
Despite the success of the memecoin projects on Solana, the founder was less than impressed with ZachXBT’s findings, posting a simple, one-sentence tweet.
Related: Bloomberg Analyst Predicts Spot Ethereum ETF Rejection in May
Memecoins aren’t inherently evil, but they are highly volatile, lack any utility and often detract from useful ecosystem dApps and developers. However, they are so ingrained in the crypto community that naturally, Yakovenko’s anti-memecoin stance was always going to be…well… memed.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
