The Solana memecoin frenzy has made many traders rating a house run or be out of the sport this cycle. Merchants are in search of new tasks that could possibly 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 large earnings primarily invested in newly launched tasks. Whereas some have made hundreds of thousands 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 best way. Nonetheless, not all tasks have achieved recognition and help for these tokens.
A substantial variety of the Solana memecoins launched within the final two months have left traders empty-handed. The newest perpetrator is the not too long ago launched Bonk Killer (BONKKILLER), which grew to become the most popular subject on Monday for the incorrect causes.
The token surpassed the $100 trillion market capitalization just a few hours after launching. Nonetheless, the rationale behind what may have been probably the most spectacular feat in crypto historical past is not any aside 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 traders with high-profit potential however prevents them from promoting their holdings. Many realized they couldn’t transfer their tokens solely after the mission’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. Based on 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 in case you can not 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 traders, the creator didn’t use the freezing authority to spice up the token’s market cap. The scammer took benefit of the operate and stole almost 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. Based on 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 group’s warning, some traders continued to purchase the mission. Within the final 12 hours, traders have spent almost $40,000 on the token. As some X customers identified, the false market cap is likely to be deceptive inexperienced traders into shopping for the memecoin.
Though it’s not the primary rip-off of this sort, the rising charge of recent launches turning fraudulent appears alarming. As reported by NewsBTC, $27 million vanished over the past month after 12 tasks have been deserted by their creators.
In the end, this incident highlights the significance of thoughtfully researching a mission’s background and thoroughly deciding whether or not the potential for large positive factors outweighs the dangers.
Whole 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 supplied for instructional functions solely. It doesn’t symbolize 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 info supplied on this web site fully at your personal danger.
