Scammers Exploit Solana-Based Memecoin Craze, Over $100M Lost in Frauds

The post Scammers Exploit Solana-Based Memecoin Craze, Over $100M Lost in Frauds appeared first on Coinpedia Fintech News

While Solana is riding the wave of high-flying meme tokens, scammers continue to get in on the fraud to rise above unsuspecting buyers in the crypto market. Crypto detective ZachXBT has raised the alert again, unveiling a worrying trend that con artists abuse the meme tokens on Solana to commit fraud against the public at the expense of unsuspecting investors.

This meme coin frenzy has marked a wave within the Solana network. A TVL increase has been seen on the Solana blockchain through these tokens. However, most of these tokens need utility and serve the purpose of being an instrument for speculation only. 

The fact that the majority of investors may find such tokens dubious does not diminish the number of investors who are lured into these tokens with the get-rich-quick hopes of income before they understand all the risks fully.

Over $100 million raised for Solana presales

ZachXBT, an on-chain detective has exposed the cases of fraudsters where people used the meme token phenomenon on the Solana platform to carry out intricate scams. He calculated and concluded that nearly  655,000 SOLs valued at $122.5M were raised from 27 different presales most of which are smaller accounts or straight-up scams.

Solana becomes the fourth largest crypto platform  globally

The Solana Ecosystem, a platform having a meme token frenzy, has been flooded with a massive increase in the trade volume, which has far surpassed that of the defi top DEXs in Ethereum by a 200% margin. Worth nothing within a 24-hour time frame their leading DEXs, for instance, Raydium, Jupiter, and Orca, showed total transaction volumes above $2.4 billion. On the contrary, UniSwap on Ethereum V3 finished trading at $1.3B volume during that period.

The increase in Solana meme tokens has created an easy environment for scammers to target naive investors. Staying alert and up-to-date as tokens float from meme mania is necessary for crypto believers to fend away from frauds and scams. In doing so the investors’ interest is protected from malicious actors.