Author: Oluwapelumi Adejumo, CryptoSlate; Compiler: Deng Tong, Golden Finance
The developer of Slerf memecoin inadvertently burned the liquidity pool and the 5 designated for pre-sale participants today Billions of tokens. The project has successfully raised over $10 million during the pre-sale period.
The project, one of many Solana-based memecoins, attracted millions of cryptocurrency enthusiasts with a presale event over the weekend.
During this period, unknown NFT artist Dekadente raised over $30 million worth of SOL through a pre-sale of a memecoin called Smole. Likewise, another NFT artist named Kero raised over $10 million through their memecoin NAP.
Cryptocurrency researcher 0xGumshoe revealed that the community has collectively invested approximately $100 million in the Solana memecoin presale.
Additionally, the memecoin craze has driven Solana decentralized transaction volume to record highs, with the Solana blockchain now surpassing Ethereum in popularity on Google.
What is pre-sale?
Typically, a presale lets investors send cryptocurrency to a designated wallet address in exchange for a weighted distribution after the token is issued. However, participating in the presale does not guarantee token distribution.
With the unexpected success of The Book of Meme (BOME) token, the popularity of the pre-sale has surged significantly, with its value skyrocketing by more than 1,000%. This surge has resulted in a large number of listings of such token trading pairs on various exchanges, including Binance.
As of press time,BOME’s fully diluted market capitalization is approximately $1 billion.
Despite the apparent success of the pre-sale model, Ethereum expert Anthony Sassano described it as a “tendering Ponzi scheme.”
He said: "People can do what they want with their own money, but sending money to a 'memecoin pre-sale' is actually very stupid."
Beware of Fraudsters
Unfortunately, the uncertainty of the pre-sale method makes it an avenue for fraudsters to take advantage of unsuspecting investors.
On-chain cryptocurrency detective ZachXBT calls attention to “scammer” accounts taking advantage of the community. On-chain data shows that one account he tagged raised approximately 4,935.55 SOL, worth approximately $1 million, to purchase the yet-to-be-released memecoin.