Solana Co-founder Urges Users To Stop Sending Funds In Presales

In a bold move within the Solana community, a co-founder has sounded the alarm, cautioning against the participation in presale events. This warning stems from grave concerns surrounding the credibility and safety of such initiatives, urging immediate action from users. Shockingly, recent findings by ZachXBT have uncovered a staggering $122.5 million raised across 27 presale events since March 12.

These revelations expose the pervasive presence of dubious projects and outright scams lurking within the Solana ecosystem. Furthermore, industry experts are echoing the cautionary tone, drawing parallels between current token presales and the turbulent days of ICOs, where investors faced substantial risks and losses.

Responses and Measures Taken

Amid the escalating concerns, prominent exchange HTX has stepped up, announcing a proactive measure in collaboration with Smolecoin. They’re facilitating refunds for users affected by the tumultuous presale events, showcasing a commitment to safeguarding investor interests.

Additionally, Dexter, founder of another Solana meme coin project, has made a pledge to issue refunds and implement robust risk-mitigation strategies. These responses underscore the importance of taking decisive action to mitigate risks associated with meme coin investments and ensure the protection of investors’ hard-earned funds.

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Impact on Meme Coin Trading and Solana’s Fee Capture

The fallout from these presale events has reverberated across the meme coin landscape, leading to significant declines in the values of popular tokens like PEPE, WIF, FLOKI, and BONK. However, amidst the turmoil, Solana’s fee capture has surged, surpassing even that of Bitcoin.

This surge is attributed to the booming on-chain trading of meme coins, with Solana consistently capturing daily fees exceeding $3 million for three consecutive days, setting unprecedented records. Nonetheless, the exuberance is dampened by the setback encountered by the Slerf project. Presale investors in Slerf have been dealt a heavy blow, with losses exceeding $10 million due to unfortunate mishaps within the project’s development.

Also Read: UK Financial Watchdog Intensifies Fight Against Crypto Scams