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Memecoin Scams: Over $26 Million Lost in Unrealized Pre-Sales on Solana Blockchain

Memecoin swindling: details of the $26 million rug pulls and their impact on Solana investors

Recent analysis by blockchain sleuth ZachXBT has uncovered that over a dozen memecoin projects on the Solana blockchain have been abandoned post-fundraising, collectively amassing over $26 million. The investigative report indicated that a significant sum of 180,650 SOL (approximately $28 million) was raised from these dubious ventures. Notably, a user with the alias @pokeepandaa was responsible for one of the largest scams, raising over 52,000 SOL for the LIKE token, nearly 30% of the total scammed amount. 

ZachXBT warns the community, advising vigilance against future projects by these operators: 

"Would avoid any future projects launched by these founders." 

This surge in fraudulent activity coincided with a broader memecoin craze in March, which saw over 35 presales rake in upwards of $150 million worth of SOL.

Broader trends in crypto scams and market vulnerabilities

The recent spike in memecoin fraud on Solana is part of a larger trend observed across various blockchain platforms. ZachXBT also pointed out similar suspicious activities on Base, a layer-2 solution by Coinbase, indicating a possible migration of fraudulent tactics across networks. The allure of quick profits from memecoins has not only attracted genuine investors but also spurred the use of trading bots designed for arbitrage, which often exacerbate network congestion and lead to a high number of failed transactions, termed "bot spam." 

According to Mert Mumtaz, CEO of Helis, these bot-generated transactions have become a significant portion of failed activities on Solana, underscoring the operational challenges and security risks inherent in the current landscape of cryptocurrency trading.