Solana’s Meme Coin Madness

Despite warnings from Solana Labs founder, meme coin trading has boosted Solana’s blockchain above competitors like Ethereum.

Meme coins continue to exemplify the infamous gambling aspect of cryptocurrencies on Solana, where users can potentially win or lose a fortune with a few mouse strokes.

On March 22, a trader incurred a loss of 263.5 Solana (SOL), equivalent to $46,000, on the meme coin LADYF, according to Lookonchain.

The meme token was purchased for more than $50,000 by the cryptocurrency user shortly after it was advertised. The coin dropped precipitously minutes later, and the trader sold it for a mere 36.49 SOL, or approximately $6,200.

Dexscreener reports that the value of LADYF increased by over five million percent within seconds of its introduction; however, it has declined. The token bears a resemblance to LADYS, a meme token that was officially introduced by the NFT initiative Milady.

Pre-sales for Milady initially generated more than $18 million in SOL in two hours; however, early investors were refunded.

Solana’s Warning Amid Meme Coin Surge

A trader experienced a capital loss of 80%, whereas another escalated their initial wager by more than 3,400%. Seconds after LADYF began trading, the trader invested 0.5 SOL, or $90, and amassed 2.8 billion on the meme coin.

Utilizing sophisticated tools with higher gas fees, this cryptographic practice is known as “sniping” and aims to secure priority settlement. The trader paid over $310,000 worth of 1,784 SOL in multiple transactions.

Once more, LADYF demonstrated the high liquidity of speculation regarding meme coins and cryptocurrencies based on meme culture and community enthusiasm that do not inherently provide holders with utility.

Pre-sale events for these tokens have raised over $150 million since March 12.

Despite the advice of Solana Labs founder Anatoly Yakovenko to investors to refrain from investing in cryptocurrencies, meme coin trading in the past week has propelled SOL’s blockchain above competitors such as Ethereum on at least two occasions.