Solana prices are currently reaching an all-time high as speculators rush to invest in the next potential meme coin play. According to ZachXBT, the SOL token presales have brought in over $149.2 million since March 12, amidst a frenzy for meme coin cryptocurrencies within the altcoin ecosystem. Influencers and large accounts have successfully raised more than 796,000 SOL for these meme coins, which are often backed by hype and offer little to no utility.
This surge in presales has led to a trend of “aping into coins” across the cryptocurrency landscape, with users buying SOL specifically to invest in these tokens. The crypto has seen a growth of over 25% in the past week, briefly reaching above $200 according to CoinMarketCap. However, at press time, it was trading around $182, which is still 26% lower than its November 2021 peak.
ZachXBT’s analysis revealed that not all of the meme coin projects launched a token after receiving significant amounts of SOL from investors. In fact, out of the 33 presales, at least 16 either refunded users or disappeared with the proceeds, which is known as a “rug pull” in the crypto industry.
One such project, NFT project Milady, raised over $18 million in SOL before announcing a change of plans due to the ongoing SOL meme coin frenzy. The team has promised to refund all presale investors and focus on other endeavors.
Solana Labs Co-Founder Anatoly Yakovenko has also spoken out against this trend, encouraging the community to “stop doing this”. He is referring to the high volume of SOL being used for speculative virtual currencies inspired by crypto meme culture.
Meme coins have been around in the crypto world since 2013, with the launch of Dogecoin (DOGE). However, there has been a resurgence of this trend on Solana, particularly with the success of Dogwifhat (WIF), a billion-dollar token backed by a community that plans to advertise the meme on Las Vegas’ sphere.
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