Expect Lots Of Rugs In The Solana Ecosystem With The Wild Outbreak Of Memecoins

We have been here before, that is how we know, the Solana ecosystem is currently been flooded with a lot of Solana memecoins, most of these coins have no utility. The first one I have noticed is the Bonk Airdrop, launched in late December 2022, I can’t say I clearly understand its pattern yet. Other meme coins had a pattern, create a token with a lot of supply on the blockchain (preferably the Ethereum or the Binance Smartchain). I think the Ethereum Blockchain was the first, but due to the high gas fees from the Ethereum Blockchain, people decided to migrate to Binance smart chain.

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So their pattern was like this, create a token, give it a massive hype, create fake pump, shill it get people to invest in it, then dump it so hard. The rug was so massive you could see rugs everywhere you went to, some of these memecoin projects started migrating smart contracts and in trying to maintain a good supply, the legitimate once with good internet ions decided to migrate to contract that reduced supply from 100:1 or 1000:1. This means that with the new contract, for every 1000 of the old token, you can get 1 of the new token at the same price. But I wasn’t interested any more because I was done with memecoin gambling so I left.

Here we are seeing the same play but on the Solana blockchain. While this is good for the Solana coin, because it’s pumping the price, I can’t help but see how this is another Ponzi scheme. I can’t say early investors are the lucky ones this time, because early investors are losing their money. This time it’s the battle for airdrops and of role, so anyone that is looking forward to being an early investor should be careful. These tokens get created and people add liquidity to them, only to have the moderators and developers airdrop these tokens to people for free. So the value of these tokens starts dumping, it doesn’t pump, it just dumps, while people get airdrops.

People are not looking forward to investing now, they are only after the airdrop, one of the ways to get this airdrop is to create hype and shill the token through memes and other means. Attracting new people, unfortunate people seeing the hype and shilling and seeing that the token is new will invest, thinking it was the right idea, and boom, after the airdrop What is next? Rug right? Well, let’s see how it goes, as I am still observing this new system.

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