At least 12 Solana-based memecoins launched through presales have been abandoned by their developers within the last month, according to blockchain investigator ZachXBT. These projects collectively raised a staggering $26.7 million from investors, only to vanish shortly after launch.
Only 1 month has passed and 12 of the Solana presale meme coins have been completely abandoned after raising >180,650 SOL ($26.7M).
Would avoid any future projects launched by these founders. https://t.co/J0zFldRIa6 pic.twitter.com/K610MAEPMn
— ZachXBT (@zachxbt) April 21, 2024
The controversial presale method allows projects to raise funds before launching their token, often with minimal vetting or an established track record. This lack of oversight creates fertile ground for what some call “rug pulls,” where developers take the money and run, leaving investors with worthless tokens.
One particularly egregious example highlighted by ZachXBT is a memecoin called “I like this coin” (LIKE). The project’s anonymous founder raked in a whopping $7.7 million during the presale. However, upon launch, the token’s value plummeted a staggering 90% within the first eight hours, and it currently sits at a value of 99.2% below its launch price. The developer has since vanished, leaving investors with significant losses.
This incident underscores the inherent risks associated with memecoin investments, particularly those launched through presales on platforms like Solana. Memecoins often lack real-world utility or underlying technology, relying solely on hype and community sentiment to drive value. This makes them highly susceptible to price manipulation and pump-and-dump schemes.
ZachXBT’s findings serve as a stark reminder for investors to exercise caution and conduct thorough due diligence before investing in any cryptocurrency project, especially memecoins and those relying on presales. Investors should consider factors like the team’s experience, the project’s roadmap and whitepaper, and the overall market sentiment before making any investment decisions.
