The Solana memecoin frenzy has prompted comparisons with the Ethereum ICO era

The Solana blockchain has become the hub of new memecoins as the new bull season begins, with several new memecoins reaching billions of dollars in market capitalization within days of launch.

The memecoin frenzy has drawn comparisons to the bubble of Ethereum's initial coin offering (ICO) era in 2017, when several crypto projects raised millions of dollars but many failed to deliver.

Memecoins are cryptocurrencies that are derived from Internet memes or other humorous features, but have no real-world use case other than being a pop culture reference. These cryptocurrencies are highly speculative and supported by some enthusiastic online communities.

Dogecoin (DOGE) is considered the OG memecoin and has received support from Elon Musk during the 2021 bull market. In the year By 2024, several memecoins, some less than a week old, will reach billions in market capitalization, creating new crypto millionaires every hour.

A recent comparison with the ICO presale era 2017 saw many influencers raising millions of dollars in presales, with new memecoins coming in between.

Users on X have compared current memecoin offerings (MCOs) to the Ethereum ICO bubble in 2017, when several crypto projects raised funds and promised to deliver only to disappear. According to a 2018 report, more than 90% of ICO projects are rejected.

Similarly, there have been several instances where influencers either ran away with the pre-sale money or dumped the market immediately after the sale. In one example, a developer who raised 535,000 Solana (SOL) tokens to launch memecoin, which was valued at $10.4 million at the time, accidentally burned them all.

One user on X said that memecoin mania is a more honest version of 2017's ICO craze and 2021's invincible token/crypto-art bubble, as projects “no longer have to pretend they're presenting on a fake white paper and investors no longer have to.” Pretend I'm into art.

Stories of a few traders who make millions of dollars in a few days often attract others to try their luck. However, in most cases they lose a significant portion of their investment.

Crypto proponents say the memecoin bubble will ultimately drive away millions of new users who invested their money into the technology without recourse.

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