Author: Frank, PANews
On March 17, crypto artist Dekadente (Twitter ID: @0xDekadente) posted this content on Twitter:
“Solana Memecoin pre-sale starts now!
Send SOL to: BL1gBdtuYRYSepKKpoy1GCNSmS1JeGSiNb7tdB2HQzor
Minimum 1 SOL 50% pre-sale and 50% LP. All SOL will be converted to LP and LP will be destroyed. The delivery address of RT and reward multiplier. End within 24 hours! "
The tweet has more than 4.8 million views, and the address received 169,982 SOL tokens through this fundraising, worth more than $32 million.
In the following days, the project was delayed in issuing tokens and airdrops as scheduled due to various reasons. It was not until the afternoon of March 21 that the token SMOLE issued by the project was hurriedly launched online.
Performance art with only shock and no surprise
The pre-sale of Meme coins is a new popular method on Twitter recently. It was first initiated by the creator of the Pepe Meme named Darkfarms. Darkfarms tried to launch a new Meme coin BOME (BOOK OF MEME) with a fundraising amount of 500-600 SOL on March 10, but the enthusiasm of fans later fixed the number at 10,131 SOL. Subsequently, Darkfarms put all this amount into the LP pool, creating almost the most liquid Meme coin. This move triggered widespread discussion and recognition, and the BOME coin subsequently rose approximately 577 times in a few days. After the wealth creation effect occurred, more and more crypto artists or KOLs began to imitate this pre-sale model, so that the number of Meme coins issued on the Solana chain reached 9,943 on March 15.
Dekadente is the creator of the NFT projects CryptoCheems and DystoPunks. The CryptoCheems project has only had 1 transaction completed on Opensea in the past 180 days. The transaction price reached its highest point in 21 years at 2.77 ETH, and the most recent transaction price was 0.15 ETH. It can be said that CryptoCheems and DystoPunks do not seem to be out of the circle NFT works, but this does not affect its author Dekadente's success in the new round of Meme pre-sale mode.
According to Dekadente on Twitter: "Many people asked me to create a memecoin on Solana because my first NFT collection was a meme." Subsequently, he launched a poll on Twitter, and 73.4% of people expressed their approval for him to issue a pre-sale of Meme coins.
In Dekadente’s pre-sale, there is no limit on the number of tokens sent, only 24 hours. Even Dekadente continues to encourage everyone to send multiple times or send large amounts of SOL tokens.
“Someone just sent over 1,700 SOL, a small transaction,” Dekadente wrote.
Within days of the pre-sale, Dekadente stated that it was unable to add an LP pool on Raydium, resulting in delays in airdrops and token issuance. This has also caused concern among many users in the community. After all, this purely voluntary money transfer may be difficult to obtain legal protection.
Experiments on human nature are ultimately no match for humanity
After the opening, SMOLE did not continue the legend of the Meme pre-sale coin in the previous days. It only doubled after the opening and then fell immediately. Its market value has reached a staggering US$220 million, and its market value ranking has reached the top 20 of Meme coins. If it can replicate a similar increase to BOME (a 100-fold increase), it means that its market value may reach more than 10 billion US dollars. However, unfortunately for users who were full of expectations, SMOLE fell to around the opening price about 4 hours after the opening, and almost broke.
In any case, the user who sent money to Dekadente is lucky. At least the artist did not run away with the bucket.
But another group of users may not be so lucky. Many projects that raised funds disappeared directly after receiving the funds, leaving users with nothing to lose.
On March 17, a Solbot project received support and forwarding from multiple Twitter Blue Vs after releasing the pre-sale currency news, and finally raised 2,870 SOL. After the project party put 1,717 SOL into the liquidity pool, the project's Twitter account was banned. The token fell rapidly after a brief rise. As of March 21, it had fallen more than 99% from its high point. The remaining 1,153 SOL (valued at US$217,000) are still in the project team’s wallet without any response or reply.
There have been numerous similar cases in recent days. However, due to the lack of an effective regulatory environment, most users who lose money also default to losing money and hope that they can invest in a pre-sale project that can make them rich. According to incomplete statistics from ZachXBT, 33 projects on the Solana chain have raised a total of 796,000 SOL (US$149 million) in this round. As of March 20, nearly half of these projects still failed to fulfill their commitment to issue tokens. Solana co-founder Toly also forwarded ZachXBT’s statistics and called on investors to stop doing this.
A mockery of value investors?
Behind the noise, perhaps we should objectively discuss the nature of this round of Meme coin pre-sales.
Judging from the endless financing forms emerging in the encryption circle, this method of directly sending addresses and then allowing users to send money seems to have become the simplest financing method. Trust is built on a foundation that no longer relies on white papers, project plans or fancy teams. This is also very frustrating for many teams that actually develop products.
The reason behind this may not mean that the cost of building trust has become cheap. On the contrary, it is the epitome of the lack of trust environment in the entire encryption industry. For users, especially those who are keen on Meme coin trading, rather than participating in a project with perfect packaging and few shares, the final result may not be ideal. It may not be as good as just mindlessly betting on some big rules that will return to zero, but there is a very small chance that you will get rich.
Previously, tens of thousands of Meme coins were issued on the chain every day, with almost no endorsement and all relying on the user's own sense of hunting. Therefore, this round of pre-sale Meme has actually increased the trust foundation for these users (at least some KOLs are endorsing it). Even if they encounter escape, there is still a target to find. Basically, it is a bet made by users with a small amount of funds and the influence of KOLs. This seems more like a mockery of those project parties who have worked hard to package themselves.
Does this mean that these simple and crude Meme coins are a better choice for users?
The answer is probably no. PANews has previously done a detailed analysis of the profit-loss ratio probability of Meme coins (Extended reading: How to scientifically hedge against "earth dogs"? This article details the entire process from trading strategies to finding "golden dogs" ).
Returning to this round of pre-sale coin craze, we will find that the 12,787 tokens issued on Solana in the past 9 days (March 12 to March 21) represented by BOME and SLERF that performed better in the end (dexscreener data) can be said to be one in a million. The occurrence of these two tokens, BOME was because it was the first token to create a trend, and SLERF was because the founder accidentally destroyed the token. The logic of its rise is essentially accidental, and as the trend cooled down, almost all pre-sale tokens suffered significant corrections. Except for early investors, it is difficult for users who enter later to make profits.
Participating in the pre-sale of Meme coins is essentially a very low-probability speculation. It is the ultimate interpretation of speculation and FOMO emotions in the crypto circle, and its return rate may not even be as good as buying a lottery ticket.
One user posted this thought-provoking tweet.
“Cryptocurrency Pre-Sale:
SOL raised $2M in 2020
BNB raised $15 million in 2017
Ethereum raised $18 million in 2014
In 2024, a random Twitter user raised $32 million”
After 10 years, Ethereum’s market value has reached $430 billion. In another month, no one may be interested in today’s lively pre-sale coins.
