- Solana’s price has dropped 33% over the past month to US$176.47 as the platform faces backlash from multiple memecoin scandals including failed presidential tokens TRUMP and MELANIA which lost over 77% and 90% of their value respectively.
- The Libra token promoted by Argentine President Milei resulted in US$4.4 billion in losses and potential legal consequences while TRUMP token losses affected 800,000 wallets with US$2 billion wiped out.
- Industry analysts like Miles Deutscher are concerned about the deteriorating state of the crypto community as scams proliferate.
Memecoin scandals rock the blockchain world and Solana (SOL) is facing particularly strong headwinds.
The past month has seen the price of SOL decline by almost 33%, while the coin is down 6.7% over the past 24 hours alone. Currently SOL trades for US$176.47 (AU$277.94) as per CoinMarketCap data.
The drop comes as traders criticise the platform which was the launchpad for the 2024 memecoin frenzy. It all started with dog themed tokens like Dogwifhat and Bonk and took a turn for the worse with platforms like Pump.fun.
Presidential Memecoin Plays Turn Sour
But things got really bad and almost surreal when US President Donald Trump launched his own memecoin mere days before his inauguration, while his wife’s very own coin followed not long after.
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Official Trump (TRUMP) has lost 77% of its value from its all-time high in late January and seems to be fading into irrelevance, while Official Melanie Meme (MELANIA) lost 90% since its peak.
The cherry on top came when Argentine President Javier Milei promoted the Libra (LIBRA) token, leading to losses of US$4.4 billion (AU$6.9 billion). The president is likely facing legal consequences for allegedly misleading investors.
TRUMP “investors” also lost around US$2 billion (AU$3.1 billion), spread over 800,000 wallets.
There have also been other scandals, like the Pumpkin ‘rug’, a crypto sleuth drama and Ye’s bizarre ad, to name a few.
No wonder sentiment is turning sour, with so many rug pulls and dramas, in what seems a never-ending cash grab. Tyler Durden, a well-known crypto commentator, even said that “the market has decided it is angry at Solana”.
Pandora’s Box Has Been Opened, Says Australian Analyst
Aussie analyst Miles Deutscher said on X, he felt “sick about the state of the industry right now”.
I’m referencing how it used to feel like a proper community of people supporting each other. Now it’s just full barbarian/outsiders coming in just to rob people. Very very bad space for your mental health.
Miles DeutscherAlthough Deutscher thinks that fundamentally nothing has changed, the “Pandora’s box for blatant scamming”, has been opened.
Some users even went so far as to argue that, with all the scams that happened, maybe it’s best if traders turn their attention back to Ethereum, the second-largest crypto by market cap.
However, even the OG altcoin is not without its own challenges, as there are ongoing issues around the leadership of the Ethereum Foundation, network upgrades and high transaction fees.
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That aside, the price of ETH is pretty much the only green thing among top ten crypto projects, up 2% in the past 24 hours, as most of its competitors struggle to stay afloat.
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