Solana memecoins (SOL) have arrived on the scene, buoyed by considerable enthusiasm. Capitalizations explode in the space of a few hours, making investors both happy and unhappy. And this is beginning to attract criticism. Let’s take a closer look at a crypto field in turmoil.
Solana’s memecoins attract all eyes
If there’s one sign that a bull run is underway, it’s to be found in memecoins. These humorous cryptocurrencies, based on nothing more than fleeting investor interest, are exploding at the moment. This is particularly the case with Solana, which has seen pre-sales and token sales explode.
The most telling example this week was the “BOOK OF MEME”. Solana’s memecoins collected $1.5 billion in market capitalization in just 2 days of existence. This corresponds to an increase of +50,000% for the BOME.
Pure objects of speculation, memecoins arouse both envy and annoyance. Their trajectories are often vertical, in one direction or the other. And if projects suddenly emerge, many are suddenly abandoned by investors, joining a huge graveyard of fallen projects. For buyers who positioned themselves too late, this can be a rude awakening
A “cryptocurrency lottery “
Within the crypto community, Solana’s memecoins, with their insane pre-sales, are starting to attract a lot of criticism. While some are brushing it off as a big “cryptocurrency lottery”, others are pointing to the effect they’re having on the ecosystem’s reputation.
Ki Young Ju, founder of analytics firm CryptoQuant, took a stand yesterday, strongly criticizing memecoins:
Meme coins harm the crypto industry.
It’s frustrating to see billion-dollar-cap memecoins overshadow hardworking teams building legit products to advance this industry.
Easy money can’t drive industry-wide progress, as shown by the 2018 ICO burst. https://t.co/YWkRA39v9Z
– Ki Young Ju (@ki_young_ju) March 18, 2024
“Memecoins are hurting the crypto industry. It’s frustrating to see billion-dollar-cap memecoins overshadow teams working hard on legitimate products. “
According to Ki Young Ju, greed can’t in itself be a sign of progress for the crypto industry. It’s a criticism we’re hearing more and more, but it’s countered by the insane numbers that bring memecoins into existence.
SLERF, WIF, BOME… Solana’s memecoins are one controversy after another
Solana’s memecoins exist in a vast playground whose creators decide the rules. And this often sparks controversy. SLERF recently paid the price. The token bearing the effigy of a sloth aroused interest by collecting $10 million in pre-sales… Except that its creator made a mistake, and burned all the tokens in the presale.
But rather than signing the project’s death warrant, it had the opposite effect. The considerable error reached meme status, and investors opted to buy SLERF anyway. The result: memecoin currently has a $466 million capitalization, and is listed on several exchange platforms.
As for Dogwifhat, it has been crowned king of Solana’s memecoins. His defenders have succeeded in their gamble, and the memecoin will be displayed on the Las Vegas Dome for a week. In recent days, an NFT featuring the dog in the hat has also sold for $4.3 million.
Volatility: a constant in Solana’s memecoins
It’s hard to keep up with all the industry’s initiatives, each of which seems more exaggerated than the last. But one only has to look at this week’s price rises to see that the gamble remains risky. Many of Solana’s main memecoins have seen their prices plummet :
Solana memecoins tumble in recent days
But that doesn’t seem to be enough to dampen the Solana community’s frenzy… And that benefits SOL. The cryptocurrency is now in 4th place in the ranking of most capitalized cryptocurrencies. A position it may find hard to hold if the delirious enthusiasm surrounding its memecoins subsides.
Source : CoinGecko
