Solana memecoin frenzy draws parallel to Ethereum ICO era

cyptouser4 weeks agoCryptocurrencies News24

The Solana (SOL) blockchain has become a hub for new memecoins this bull season, with several new memecoins barely a couple of days old racking in billions in market capitalization.

This memecoin frenzy has made many draw comparisons to the Ethereum (ETH) initial coin offering (ICO) era bubble from 2017 when several crypto projects raised millions of dollars, but many failed to deliver.

Memecoins are cryptocurrencies originating from an internet meme or having some other humorous characteristic, but lack any 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 was supported by Elon Musk during the 2021 bull market. In 2024, multiple memecoins, some barely a week old, have racked in billions in market capitalization, making new crypto millionaires by the hour.

The recent comparison to the ICO pre-sale era from 2017 comes from the fact that many influencers have managed to raise millions of dollars in pre-sale to launch new memecoins.

Users on X compared the current memecoin offerings (MCOs) to the ETH ICO bubble in 2017 when several crypto projects promised to deliver only to vanish after raising funds. A 2018 report indicated that over 90% of the ICO projects failed.

Similarly, there have been several instances where influencers have run away with the pre-sale money or have dumped it on the market right after the launch. In one such instance, a developer that raised 535,000 SOL ($10.4 million) to launch a memecoin accidentally burnt it all.

Developer burns $10 million in Sol. Source: Slerf on X

One user on X noted that the memecoin mania is a more honest version of the 2017 ICO craze and the 2021 NFT/crypto-art bubble as projects “no longer have to pretend to deliver on a fake white paper and investors no longer have to pretend to be in it for the art.”

Scammer defrauding people using memecoin frenzy. Source: ZachXBT on X

Stories of a few traders making millions of dollars in a couple of days often attract several others to try their luck. However, on most occasions, they lose a significant chunk of their investment.

A trader's memecoin portfolio. Source: Elja on X

Crypto proponents claim the memecoin bubble burst would eventually liquidate millions of new users who are blindly putting their money into technology with no utility

Magazine: Inside Pink Drainer — Security analyst defends his crypto scam franchise

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

SEC extends decision period for Global X, Franklin Templeton spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) recently announced that it will extend its decisio...

DigiFT becomes Singapore's first regulated public blockchain exchange for asset tokenization

Ethereum-based digital assets exchange DigiFT said it received a Capital Market Services (CMS) licen...

Binance withdrawals spike to $1.4B in 24 hours amid continued executive departure and regulatory struggles

Binance, the largest crypto exchange by trading volume, has endured more than $1 billion of net outf...

Prosecutors want $11B judgment, 40-50 years in prison for Sam Bankman-Fried

Prosecutors want $11B judgment, 40-50 years in prison for Sam Bankman-Fried

25cc9d4a˃Prosecutors are asking for a sentence of 40-50 years for former CEO of bankrupt cryptocurre...

TrueUSD's slip from $1 peg deepens amid broader sell-off as FDUSD thrives

TrueUSD's slip from $1 peg deepens amid broader sell-off as FDUSD thrives

TrueUSD (TUSD) deviation from its $1 peg has widened under the current red market situation.Data fro...

New Zealand fears missing crypto train with 'wait and see' approach

New Zealand fears missing crypto train with 'wait and see' approach

1205f261˃A New Zealand ministry focused on shaping the nation's economic strategy has proposed adopt...