8 months ago
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Solana has outperformed Ethereum and other Ethereum Virtual Machine (EVM) Layer-2 solutions as regards its 24-hour trading volume.
Crypto research, Gumshoe recently spotlighted aggregated data which saw meme coin founders amassing about $100 million worth of Solana (SOL) through token presales in just three days.
The Meme Coin Presale Model
In the presale approach, investors transfer cryptocurrency to a predefined wallet address in exchange for a weighted distribution of tokens when it goes live. This presale approach differs from those of Solana-based meme coins like BONK with considerable success. Notably, there is no guarantee that investors will receive tokens, making presales an appealing opportunity for fraudsters and scammers to take advantage of naive investors.
In a post made on the X platform earlier Today, pseudonymous crypto investor Nick raised concerns over massive buys of some undisclosed meme coin, stating that:
“This is legit peak degeneracy. Aping $180k and $90k into meme coins.”
A peculiar example of a meme coin presale is the launch of Book of Meme (BOME) by pseudonymous artist Darkfarms1. BOME, which was initially valued at roughly $4 million, surged more than 36,000% to a high market capitalization of $1.45 billion in less than 56 hours. This quick surge resulted in astounding returns for early investors, with one individual turning an initial investment of 420.69 SOL into $32 million within three days.
The mania surrounding meme coins has sparked criticism from prominent figures in the crypto space. Ethereum educator Anthony Sassano denounced the presale approach, calling anyone who engages in such schemes “dumb as hell”.
“People can do what they want with their money but sending money to a “memecoin presale” that has a 99.9% chance of rugging is actually just dumb as hell,” Sassano stated in a post on X.
Solana’s Dominance in the Crypto Market
According to the latest data from CoinMarketCap, Solana is trading at $209, representing an increase of 11.4% in the past days, with its market capitalization pegged at over $92 billion. The coin has outpaced Binance Coin (BNB) which has a lower market capitalization of $84 billion.
Furthermore, Solana has outperformed Ethereum and other Ethereum Virtual Machine (EVM) Layer-2 solutions as regards its 24-hour trading volume. Data from DefiLlama indicate that Solana has outperformed Arbitrium with $4.2 billion in Total Value Locked (TVL). Solana’s recent performance has sparked interest among insiders, including co-founder Anatoly Yakovenko, who showered praises on the platform’s accomplishments.
Despite the co-founder’s praises, the debate about Solana’s centralized staking system persists, with critics pointing out potential flaws. While responding to these concerns, Yakovenko highlighted Solana’s ability to adapt despite changing crypto market dynamics. He specifically differentiated Solana from Layer-2 multisig control mechanisms.
He further suggested that Solana could make adjustments to maintain operation under strict supervision from regulators. Per the current outlook, Solana’s growth has made it an attractive ground for scammers and while it makes positive strides per its dominance, caution is advocated when dealing with new projects.
