Solana Memecoin Hits $320T Market Cap, But There’s A Catch

The Solana memecoin frenzy has made many buyers rating a house run or be out of the sport this cycle. Merchants are searching for new tasks that may very well be the following hit whereas the market enters a brand new re-accumulation part.

Solana Memecoins’ New Strike

Memecoins have been the narrative of this bull cycle. Consequently, those that wished to make huge income primarily invested in newly launched tasks. Whereas some have made tens of millions by buying and selling the week’s high gainers, others have misplaced important quantities attempting to climb the ladder.

Solana-based memecoins have been the preferred, with some, like dogwifhat (WIF) and cat in a canine’s world (MEW), main the way in which. Nonetheless, not all tasks have achieved recognition and assist for these tokens.

A substantial variety of the Solana memecoins launched within the final two months have left buyers empty-handed. The most recent wrongdoer is the just lately launched Bonk Killer (BONKKILLER), which turned the most well liked matter on Monday for the flawed causes.

The token surpassed the $100 trillion market capitalization just a few hours after launching. Nonetheless, the explanation behind what might have been probably the most spectacular feat in crypto historical past is not any apart from a honeypot rip-off.

Bonk Killer's worth and market capitalization. Supply: Birdeye

As reported by SolanaFloor, the memecoin is a rip-off token that pulls buyers with high-profit potential however prevents them from promoting their holdings. Many realized they couldn’t transfer their tokens solely after the undertaking’s creator activated the “freeze authority.”

This motion allowed the creator to keep away from promoting the token, which skyrocketed the market capitalization metric to $328 trillion. In response to analytics platform Birdeye, the Solana-based memecoin registers a $318 trillion market cap on the time of writing.

It’s price noting that the token isn’t backed by the quantity mirrored within the metric. As one X consumer pointed out, the token is nugatory if you happen to can’t promote it.

While you purchase however cannot promote. #bonkkiller pic.twitter.com/AjJokgptmw

— Bull.BnB (@bull_bnb) April 30, 2024

Half A Million Stolen By Memecoin Scammer

Sadly for buyers, the creator didn’t use the freezing authority to spice up the token’s market cap. The scammer took benefit of the perform and stole practically half 1,000,000 {dollars} in BONKKILLER and SOL tokens.

The creator, who holds round 90.8% of the whole provide, eliminated 30,500 BONKILLER and 1,561 SOL, price round $420,000. In response to Birdeye information, the token is valued at $32.81 as of This writing.

🚨 UPDATE: @solana memecoin BONKKILLER, a rip-off and honeypot token, has withdrawn liquidity price over 3,000 $SOL after freezing token gross sales for customers. pic.twitter.com/JO3E3RuXMW

— SolanaFloor | Powered by Step Finance (@SolanaFloor) April 30, 2024

Even after the neighborhood’s warning, some buyers continued to purchase the undertaking. Within the final 12 hours, buyers have spent practically $40,000 on the token. As some X customers identified, the false market cap may be deceptive inexperienced buyers into shopping for the memecoin.

Though it’s not the primary rip-off of this sort, the growing price of latest launches turning fraudulent appears alarming. As reported by NewsBTC, $27 million vanished during the last month after 12 tasks have been deserted by their creators.

In the end, this incident highlights the significance of thoughtfully researching a undertaking’s background and thoroughly deciding whether or not the potential of huge good points outweighs the dangers.

Complete crypto market cap is at $2.18 trillion within the three-day chart. Supply: TOTAL on TradingView

Featured Picture from Unsplash.com, Chart from TradingView.com

Disclaimer: The article is offered for academic functions solely. It doesn’t characterize the opinions of NewsBTC on whether or not to purchase, promote or maintain any investments and naturally investing carries dangers. You might be suggested to conduct your personal analysis earlier than making any funding selections. Use data offered on this web site totally at your personal threat.