Two pull the carpet and find the Solana memecoin, which is damaged but still alive

While most exit scams or carpet-dragging result in project failure, Solana-based memecoin Catwiphat (CIF) has survived two of them, showing how the decentralized nature of crypto sometimes allows the project to continue even when the developer is gone.

Catwifehat investor NFT_Sloth said in a chat with Cointelegraph that the project has survived two carpet pulls in 12 days, and still has a dedicated community behind it.

First, the founders of the project put their tokens on the open market a few hours after the launch on December 12, 2023, raising 20% ​​of the WIF supply for 3.86 SOL (SOL) (currently valued at $265) in cash and are said to have taken the maximum amount. Its fluidity. Despite this setback, the rest of the investors quickly took over the project, forming a new dev team to promote the token. As a result, CIF recovered a market value of more than $4 million 11 days later on December 23.

But the token's largest liquid payment provider downgraded the project again on December 24, removing 92% of its liquidity and causing its value to accumulate roughly 76%. Despite further losses, the Token Div team restructured and continued to work on the project. As of April 3, the market cap is set at approximately $1.4 million. The 200 million tokens sold on the day the founder was inaugurated would be worth more than $250,000 if held today.

Catwife's pre-order has reached a market value of 3 billion dollars

According to NFT_Sloth, Catwifhat was created to follow in the footsteps of Solana's memecoin Dogwifhat (WIF), which was launched in November 2023. This early token was created to use the popular “Dogwifhat” meme on the X platform since 2019. .

According to the meme history website Know Memes, the dogwhiphat meme started in 2011. On November 6, 2019, professional Fortnite player Issa temporarily changed his profile picture on X to a picture of a Shiba Inu dog wearing a beanie hat. Other Fortnite players have also changed their profile pictures to the image, saying they're creating a “movement” or “gang.”

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The following month, X users edited the photo in various ways and began reposting it to X, causing the meme to quickly spread across the platform.

In the year In November 2023, a group of crypto developers tried to take advantage of this phenomenon by creating a token associated with it. Members of the Dogwiffhat community, such as NFT_Sloth, sent images to various memecoin influencers via X. They took the influencer's profile and edited it and added the beanie from the dogwhiphat meme.

One of these influencers was “Joji” who used Azuki's Invincible Token as their profile picture. A picture of this Azuki has been posted on the head by Beanie, which allows them to express their support for the piece through a changed profile picture. Joji started promoting Dogwhiphat on their Telegram and X channels and the token quickly gained popularity.

Catwifhat launches and throws developer tokens

As reported by NFT_Sloth, CatWifeFat was one of the first memecoins to try to follow in DogWifeFat's footsteps. But the developer of the project allegedly committed an exit scam hours after its launch.

According to Solscan Block Browser, the developer of Catwiphhat issued 1 billion tokens during its creation on December 12, 2023, all of which were sent to the deployer's account. Then you send 10% (100 million CIF) to an account starting with Fm1w and 10% to an account starting with AUKt. The remaining 80% (800 million CIF) is deposited into a liquid pool on the Radium Decentralized Exchange. These 800 million tokens combined with 1 SOL put the initial CIF price at 0.00000000125 SOL ($0.000000085675).

However, the token had no transactions on its launch date. The developer deployed the token contract and listed CIF on DEX Screener but made no further attempts to attract buyers. Despite this lack of marketing, the token attracted some buyers who spotted it on DEXScreener due to its similar name to Dogwhiphat, NFT_Sloth said.

According to blockchain data, on December 12th at 9:41 am UTC, an account starting with Fm1w sold all 100 million tokens to a liquid pool, selling for 1.24 SOL (about $85 at the time) on the exchange. Two minutes later, the account started by AUKt sold the coins and received 2.62 SOL ($180).

At 9:56 a.m., the carrier's account withdrew its share of the liquidity pool. In doing so, all CIFs in the pool are sold, leaving the issuer to receive only SOL from the withdrawal. In addition, since the price of the previous two transactions fell, the trader received only 0.00203928 SOL ($ 0.14) from the exit.

This withdrawal scam cost the developer a total of $265.

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The Catwife community has taken over

After the original developer sold their tokens and eliminated liquidity, investors were essentially left with worthless tokens. However, NFT_Sloth said that several large investors have decided to continue with the project. They formed a team to take over the promotion. During this time, Joji said he joined the group and began promoting Catwifefat to his Telegram and X audiences. This led to some “alpha callers” making public bets on memecoins to make calls in favor of catwiphat from time to time, eventually bringing more investors into the community.

After the first developer came out, it created a huge slide for traders. Within 10 days of its launch, one CIF investor bought more than 55 million tokens and deposited them into the Radium liquid pool, providing enough supply for traders to continue trading. At the time, this investor's share of the liquid pool was locked up at about 92% of its total value. They also became the social media manager for the new team and had access to the official X account. This centralization in liquidity eventually led to the second “carpet pull” of NFT_Sloth.

The project will be “baby” … again

According to NFT_Sloth, this social media manager revoked access to Team X's account on December 24th and immediately withdrew the funds. The result was a catastrophic slide in the value of the token. The current development team says that this action is “dragging the liquid carpet”, with the person taking the action being a member of the team and controlling the pool's excess liquid.

NFT_Sloth said that the group's Telegram group and website admin also went silent after this incident, providing further evidence of exit fraud.

Blockchain data shows that on December 24 at 7:57 pm UTC, two transactions from the same account were confirmed, starting with CWSy. The first removed about 102 million CIF and 1,630 SOL from the radium liquid pool. The second is approximately 55 million CIF and 869 SOL removed.

The data for this period shows a big slide for the CIF price. According to CoinGecko, the token reached a value of $0.00431771 on December 23rd, which was recorded at midnight when the day started. This indicates that the token had a market value of over $4.3 million at the beginning of that day. Early on December 24, the price dropped to $0.00261692 and the market capitalization fell to $2.6 million, a roughly 40 percent decline. At this time, the alleged carpet pulling has not yet happened.

The next price point was recorded early the next day, four hours after the alleged carpet dragging. At that time, CoinGecko data shows a CIF value of $0.00098130, which represents a market value of $981,300 and a 76% discount.

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Catwoman is reassembled

This is the second “carpet pulling” but the group has reportedly reunited. NFT_Sloth says he has built a new website for the project, while another investor has set up a new Telegram group calling himself “Sam B.” The old website was eventually taken offline for unknown reasons.

NFT_Sloth credits X user Cryptochristos for breathing new life into the CIF community. After joining the group, he spent “ten hours a day” promoting the coin, which is said to have given the public a new understanding of the project.

He explained that some sections of the public are using the NFT marketplace as a national token by providing CIF services. However, NFT_Sloth also argued that memecoins should not be weighed entirely on their merits. “Actually, the utility side of meme tokens is like the non-sexist side,” he said. “People are mostly in it for the LOLs.” Catwiphat's ultimate goal, he says, is to “break out of the memecoin bubble a bit” and achieve “mainstream” adoption similar to Dogecoin (DOGE).

As of April 2, it has a CIF price of $0.001451 and a market cap of $1,451,116. According to CoinGecko data, the 200 million tokens that the developer reportedly sold for $265 are now worth $290,000.

Catwoman's story offers some hope for victims of far-flung stocks, as investors have reportedly been able to recover from losses in these events. However, most of the victims of other projects could not recover from these incidents. As of May 2023, rag-pulling has drained more than $45 million from victims, more than any decentralized financial exploit. As of April 2023, over 42,000 victims have been defrauded of over $35 million.