TL;DR

Meme Coin Mishap: Solana-based DEX Raydium attempted to launch a meme token called CTO via Twitter. However, another CTO token deployed by Makememe.now caused confusion, leading to a 75% drop in the official Raydium CTO meme token within 24 hours.
User Frustration and Raydium’s Response: Users expressed frustration after losing funds. Raydium’s explanation about technology boundaries didn’t satisfy some community members.
Solana’s Performance and RAY Token Impact: Solana’s native token (SOL) declined by 2.6%, and Raydium’s RAY token dropped below $2. The failed meme coin launch affected investor sentiment.

Solana-based decentralized exchange (DEX) Raydium experienced a sharp decline in its native RAY token value following an unsuccessful attempt to launch a meme coin via an X token launchpad. Here’s what happened:

Meme launches at your fingertips, directly from X

Test$CTO wen? @makenowmeme https://t.co/pLH4YcyfPx

— Raydium (@RaydiumProtocol) August 1, 2024

The Meme Coin Launch Mishap

Raydium, known for its active participation in the Solana ecosystem, recently tried to launch a meme token called CTO using the makenow.meme X account. This account automatically creates Solana-based meme coins in response to specific tweets.

Unfortunately, the experiment didn’t go as planned. Raydium interacted with the Twitter account and successfully spun up a CTO token. However, keen-eyed users noticed that another CTO token had been deployed by Makememe.now, causing confusion about which one was the official Raydium meme token.

The situation quickly escalated, leading to the official Raydium CTO meme token plummeting by over 75% within just 24 hours, resulting in a market capitalization of less than $1 million.

User Frustration and Raydium’s Response

Users expressed frustration, feeling left out of pocket due to the unexpected turn of events. Raydium faced criticism for not providing an apology, refund, or compensation for the losses incurred.

In response, Raydium tweeted, “With all new technology, boundaries will be pushed—or inadvertently stumbled over.” However, this explanation didn’t sit well with some members of the Raydium Discord community.

Temporary Suspension and Parameter Changes

The makenow.meme account was briefly suspended by X early on Friday morning. However, its tweet-to-mint function and replies were later restored. The project clarified that their developers had to “change some parameters” after the mishap.

Solana’s Overall Performance

Beyond Raydium, the broader Solana ecosystem remains active. Solana’s native token (SOL) is currently trading at $163.85, experiencing a 2.6% decline on the day. Raydium’s native token, RAY, dropped below $2, marking a 5.1% decrease within 24 hours. It is currently trading at $2.01, decreasing more than 10%.

The failed meme coin launch attempt appears to have affected investor sentiment and contributed to RAY’s recent decline. Raydium’s ambitious meme coin launch resulted in unexpected complications, leaving users frustrated and impacting the RAY token’s value.

As the Solana ecosystem continues to evolve, such incidents serve as valuable learning experiences for both projects and their communities.

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Filed under: News - @ August 2, 2024 1:53 pm