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Amid the frenzy surrounding meme cash on the Solana (SOL) blockchain, ZachXBT, a crypto detective, points a warning towards potential scams. Solana meme token presale occasions amassed a staggering $122 million in SOL raised. While the thrill over these initiatives grows, considerations relating to rug pulls and fraudulent actions loom giant.

ZachXBT Cautions Against Solana Meme Coin Scam

In a publish on X, ZachXBT’s investigation reveals that over 27 presale occasions on the Solana community have collectively raised $122.5 million value of SOL since March 12. Despite the attract of fast positive aspects, ZachXBT emphasizes that many of those initiatives, typically promoted by smaller accounts, are both doubtful or outright scams.

Moreover, the shortage of transparency and accountability throughout the meme coin area on Solana heightens the danger for traders owing to the prevalence of rug pulls and disappearing funds. In addition, a person highlighted that the majority of those initiatives didn’t point out their rug tackle, additional fuelling suspicion.

Moreover, Andrei Grachev, Managing Partner at DWF Labs cautioned towards such token presales. He took to X and wrote, “This ‘send coins to this address for presale’ reminds me 2017 ICO boom. It happens always when a lot of people become rich accidentally. It’d FOMO until money change their owners. Remember, you made money because someone made wrong decisions.” Expressing uncertainty over the way forward for such ICOs, he concluded, “Very risky game, DYOR.”

In response to the rising considerations, HTX, a outstanding alternate, introduced an settlement with Smolecoin, a Solana meme token, to facilitate refunds for affected customers. This underscores the legitimacy of such builders. The Smolecoin undertaking raised 169,982 SOL as reported by ZachXBT, equal to $31.31 million, in line with the present Solana worth.

Meanwhile, Dexter, the founding father of one other Solana meme coin undertaking, broadcasts plans to challenge refunds and strategically handle remaining funds to mitigate dangers. Furthermore, Dexter expressed dedication to accountable fund allocation and undertaking growth contrasts with the prevalent skepticism surrounding meme cash on Solana.

Also Read: Solana’s Meme Coin Party Ends, BOME Price Collapses 50%

Slerf $10 Million Mishap

On March 18, the Slerf undertaking, primarily based on Solana’s blockchain and recognized for its meme coin, encountered a major setback. Presale traders of Slerf have incurred losses exceeding $10 million resulting from an unlucky mishap brought on by the undertaking’s developer.

Recently, the developer confessed on a platform, X, to by accident burning a big portion of the token provide. This contains property meant for liquidity provision (LP) and airdrop distribution. The incident unfolded after the Slerf undertaking, recognized by its account HdENn8…HgNAsF, efficiently raised over 50,000, valued at $10.8 million.

However, the developer revealed unintentionally burning LP tokens and your entire reserve of the five hundred million SLERF tokens allotted for the airdrop. With minting rights revoked, efforts to recuperate the loss have confirmed fruitless.

Responding swiftly to the market surge following the burn, an undisclosed Solana dealer exchanged 9,894 SOL tokens, valued at round $1.98 million. They acquired a considerable 69.74 million Slerf tokens as quickly as buying and selling resumed, in line with stories by Lookonchain.

Taking benefit of the heightened market exercise, the investor promptly bought their SLERF holdings for a powerful 25,001 SOL. This transaction amounted to a outstanding $5 million, leading to a considerable revenue of $3.02 million earned in simply 12 minutes. The incident has sparked hypothesis concerning the potential involvement of Ponzi scheme, including to the ZachXBT’s current warning.

Also Read: CryptoQuant CEO Critiques Surge in Memecoin Presales on Solana

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