Solana’s Memecoin Frenzy Resembling Ethereum ICO Era

The Solana blockchain has become a popular platform for the creation of new memecoins during the current bull market. These memecoins, which are cryptocurrencies based on internet memes or humorous characteristics, have gained billions of dollars in market capitalization, reminiscent of the ICO era bubble of Ethereum in 2017. Memecoins lack real-world use cases and are highly speculative, relying mainly on support from online communities.

Dogecoin, considered the original memecoin, gained support from Elon Musk during the 2021 bull market. Now, in 2024, multiple memecoins, some only a few days old, have soared in value, creating new cryptocurrency millionaires. This memecoin frenzy has drawn comparisons to the ICO bubble from 2017, where many crypto projects raised significant funds but failed to deliver on their promises.

In recent years, influencers have raised millions of dollars in pre-sale for launching new memecoins, similar to the ICO pre-sale era. There have been instances where influencers have either disappeared with the money or dumped it on the market after the launch. This mirrors the behavior seen during the ICO era, with many projects disappearing after raising funds. A previous report in 2018 revealed that over 90% of ICO projects failed.

One specific incident involved a developer who accidentally burnt all the funds they raised to launch a memecoin, totaling $10.4 million. Some users have compared the memecoin craze to the ICO and NFT/crypto-art bubbles, believing it to be a more honest version, where projects no longer need to pretend to deliver on their promises or investors to pretend they are interested in the art.

While stories of traders making millions in a short period may attract others to try their luck, the reality is that most people end up losing a significant portion of their investment. Critics argue that the memecoin bubble will eventually burst, leading to the loss of money for many inexperienced users who blindly invest in cryptocurrencies without any utility.

The Solana blockchain has become a hotbed for new memecoins, generating billions in market capitalization. The comparison to the ICO era bubble highlights the speculative nature and potential risks associated with memecoins.

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