Solana Memecoin Hits $320 Trillion Market Cap, But There’s A Catch
April 30 2024 - 4:00PM
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The Solana memecoin frenzy has made many investors score a home run
or be out of the game this cycle. Traders are looking for new
projects that could be the next hit while the market enters a new
re-accumulation phase. Related Reading: 1,503x Profit: How A
Memecoin Trader Made $13 Million With PEPE Solana Memecoins’ New
Strike Memecoins have been the narrative of this bull cycle. As a
result, those who wanted to make big profits mainly invested in
newly launched projects. While some have made millions by trading
the week’s top gainers, others have lost significant amounts trying
to climb the ladder. Solana-based memecoins have been the most
popular, with some, like dogwifhat (WIF) and cat in a dog’s world
(MEW), leading the way. However, not all projects have achieved
recognition and support for these tokens. A considerable number of
the Solana memecoins launched in the last two months have left
investors empty-handed. The latest culprit is the recently launched
Bonk Killer (BONKKILLER), which became the hottest topic on Monday
for the wrong reasons. The token surpassed the $100 trillion market
capitalization only a few hours after launching. Nonetheless, the
reason behind what could have been the most impressive feat in
crypto history is no other than a honeypot scam. Bonk Killer's
price and market capitalization. Source: Birdeye As reported by
SolanaFloor, the memecoin is a scam token that attracts investors
with high-profit potential but prevents them from selling their
holdings. Many realized they couldn’t move their tokens only after
the project’s creator activated the “freeze authority.” This action
allowed the creator to avoid selling the token, which skyrocketed
the market capitalization metric to $328 trillion. According to
analytics platform Birdeye, the Solana-based memecoin registers a
$318 trillion market cap at the time of writing. It’s worth noting
that the token isn’t backed by the amount reflected in the metric.
As one X user pointed out, the token is worthless if you cannot
sell it. When you buy but can't sell. #bonkkiller
pic.twitter.com/AjJokgptmw — Bull.BnB (@bull_bnb) April 30, 2024
Half A Million Stolen By Memecoin Scammer Unfortunately for
investors, the creator didn’t use the freezing authority to boost
the token’s market cap. The scammer took advantage of the function
and stole nearly half a million dollars in BONKKILLER and SOL
tokens. The creator, who holds around 90.8% of the total supply,
removed 30,500 BONKILLER and 1,561 SOL, worth around $420,000.
According to Birdeye data, the token is valued at $32.81 as of This
writing. 🚨 UPDATE: @solana memecoin BONKKILLER, a scam and honeypot
token, has withdrawn liquidity worth over 3,000 $SOL after freezing
token sales for users. pic.twitter.com/JO3E3RuXMW — SolanaFloor |
Powered by Step Finance (@SolanaFloor) April 30, 2024 Even after
the community’s warning, some investors continued to buy the
project. In the last 12 hours, investors have spent nearly $40,000
on the token. As some X users pointed out, the false market cap
might be misleading inexperienced investors into buying the
memecoin. Although it’s not the first scam of this type, the
increasing rate of new launches turning fraudulent seems alarming.
As reported by NewsBTC, $27 million vanished over the last month
after 12 projects were abandoned by their creators. Ultimately,
this incident highlights the importance of thoughtfully researching
a project’s background and carefully deciding whether the
possibility of massive gains outweighs the risks. Related Reading:
Crypto Analyst Says Altcoins Are About To Enter A Parabolic Curve,
Here’s Why Total crypto market cap is at $2.18 trillion in the
three-day chart. Source: TOTAL on TradingView Featured Image from
Unsplash.com, Chart from TradingView.com
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