Amid the frenzy surrounding meme coins on the Solana (SOL) blockchain, ZachXBT, a crypto detective, issues a warning against potential scams. Solana meme token presale events amassed a staggering $122 million in SOL raised. While the excitement over these projects grows, concerns regarding rug pulls and fraudulent activities loom large.

ZachXBT Cautions Against Solana Meme Coin Scam

In a post on X, ZachXBT’s investigation reveals that over 27 presale events on the Solana network have collectively raised $122.5 million worth of SOL since March 12. Despite the allure of quick gains, ZachXBT emphasizes that many of these projects, often promoted by smaller accounts, are either dubious or outright scams.

Moreover, the lack of transparency and accountability within the meme coin space on Solana heightens the risk for investors owing to the prevalence of rug pulls and disappearing funds. In addition, a user highlighted that most of these projects didn’t mention their rug address, further fuelling suspicion.

Moreover, Andrei Grachev, Managing Partner at DWF Labs cautioned against such token presales. He took to X and wrote, “This ‘send coins to this address for presale’ reminds me 2017 ICO boom. It happens always when a lot of people become rich accidentally. It’d FOMO until money change their owners. Remember, you made money because someone made wrong decisions.” Expressing uncertainty over the future of such ICOs, he concluded, “Very risky game, DYOR.”

In response to the growing concerns, HTX, a prominent exchange, announced an agreement with Smolecoin, a Solana meme token, to facilitate refunds for affected users. This underscores the legitimacy of such developers. The Smolecoin project raised 169,982 SOL as reported by ZachXBT, equivalent to $31.31 million, according to the current Solana price.

Meanwhile, Dexter, the founder of another Solana meme coin project, announces plans to issue refunds and strategically manage remaining funds to mitigate risks. Furthermore, Dexter expressed commitment to responsible fund allocation and project development contrasts with the prevalent skepticism surrounding meme coins on Solana.

Also Read: Solana’s Meme Coin Party Ends, BOME Price Collapses 50%

Slerf $10 Million Mishap

On March 18, the Slerf project, based on Solana’s blockchain and known for its meme coin, encountered a significant setback. Presale investors of Slerf have incurred losses exceeding $10 million due to an unfortunate mishap caused by the project’s developer.

Recently, the developer confessed on a platform, X, to accidentally burning a large portion of the token supply. This includes assets intended for liquidity provision (LP) and airdrop distribution. The incident unfolded after the Slerf project, identified by its account HdENn8…HgNAsF, successfully raised over 50,000, valued at $10.8 million.

However, the developer revealed unintentionally burning LP tokens and the entire reserve of the 500 million SLERF tokens allocated for the airdrop. With minting rights revoked, efforts to recover the loss have proven fruitless.

Responding swiftly to the market surge following the burn, an undisclosed Solana trader exchanged 9,894 SOL tokens, valued at around $1.98 million. They acquired a substantial 69.74 million Slerf tokens as soon as trading resumed, according to reports by Lookonchain.

Taking advantage of the heightened market activity, the investor promptly sold their SLERF holdings for an impressive 25,001 SOL. This transaction amounted to a remarkable $5 million, resulting in a substantial profit of $3.02 million earned in just 12 minutes. The incident has sparked speculation about the potential involvement of Ponzi scheme, adding to the ZachXBT’s recent warning.

Also Read: CryptoQuant CEO Critiques Surge in Memecoin Presales on Solana

The post ZachXBT Warns Against Scam As Solana Meme Coins Raise $122M In Presale appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am