Memecoin Presale Hits ‘Big Crash’ Collecting Over $100M In 3 Days.
The crypto community has begun to warn of a “severe collapse” after the founders of Solana (SOL) raised millions in token pre-sale in the last 72 hours alone.
As of press time, crypto traders have sent about $100 million worth of Solana in an attempt to buy new Solana memecoins in the last 72 hours, according to data seen by Cointelegraph and cited by crypto researcher 0xGumshoe.
These tokens have been raising money through a controversial presale model, notably for unreleased coins including Book of Meme (BOME), $NAP (NAP), Nostalgia (NOS), and others.
“This is legal gross corruption. $180k and $90k into memecoins,” wrote pseudonymous crypto investor Nick in a March 18 post for X — attached to a screenshot of massive purchases on an unknown memecoin.
The memecoin presale mania kicks into gear, with the launch of a memecoin called Book of Memes using the controversial crowdfunding model.
Launched on March 14 by anonymous artist Darkfarms1 at an initial price of $4 million, BOME raised over 36,000% in less than 56 hours to reach a peak market cap of $1.45 billion.
An early investor sundayfunday.sol – a personal friend of the creator of BOME – turned his initial investment of 420.69 Solana – valued at $72,000 at the time – into a staggering $32 million in less than 3 days, according to data posted on the blockchain analytics platform on March 17. Lookonchain.
A “pre-sale” involves crypto investors sending their crypto to a wallet address and receiving a weighted distribution of tokens in return when the token goes live.
There is no guarantee that an investor will receive tokens in exchange for cryptocurrency sent to a presale wallet address, making presales an extremely popular model for scams and fraudsters to steal money from unsuspecting investors.
Ethereum mastermind Anthony Sassano has argued against the pre-sale model, saying that anyone sending their money to a random wallet address expecting to receive tokens is “dumb as hell.”
“After 2 years everyone is back to auctioning ponzis. People can do whatever they want with their money but sending money to memecoin presale with 99.9% leverage is like hell.”
Meanwhile, memecoin mania has moved beyond the realm of crypto-X.
Entrepreneur David Sacks, best known for his role as co-host of the All In podcast, has allowed one lucky user to profit about $39,000 from the situation as the drama surrounding memecoin escalates.
When anonymous X user DeFiRabbitHole Sax started posting about memecoin on X for the first time, everyone else expected to be admired by memecoin.
So, Elon Musk said on his Twitter page, “Ok good, I'll buy ur coin” to his partner, all by podcast host Jason Kalkanis, the associated JASON Coin went up, they changed their initial investment from 1 SOL to 200 SOL.
Magazine: Inside Rose Drainer – Security Analyst Defends His Crypto Fraud Franchise
