Solana

Memecoin

when

Coin

<ul>
 <li>Solana experiences high volatility, including large transaction failures and scam projects.</li>
 <li>The COOL Coin in Solana’s ecosystem mirrors the trend of meme coins but swiftly becomes embroiled in controversy due to scams and fraud.</li>
</ul>
Solana, hailed as the top blockchain of 2024, is facing both accolades and scrutiny as it grapples with significant highs and <a href="https://thenewscrypto.com/memecoin-bears-take-flight-amidst-market-volatile-sentiment/" target="_blank" rel="noopener noreferrer nofollow">alarming lows</a>. Despite impressive wins, the ecosystem gets stuck with challenges and recurrent scrutiny, drawing praise and criticism alike.
Additionally, with Solana’s remarkable trading volume exceeding $2 billion in April, the network still suffered a staggering 72% transaction failure rate, raising concerns among investors and analysts.
Adding to the turbulence, a new <a href="https://thenewscrypto.com/fantom-protocol-founder-considers-memecoins-integration/" target="_blank" rel="noopener noreferrer nofollow">meme coin</a> called CoolCoin (COOL) has entered the scene, only to be harmed by fraudulent activities. According to data from Lookonchain, an on-chain analytics firm, a sharp-eyed individual, dubbed a “sniper/insider,” has orchestrated a dump of COOL tokens on unsuspecting investors. This insider swiftly pocketed over $1.68 million in just an hour, holding onto a sizable portion of COOL tokens valued at over $20 million.
Lookonchain issued a warning and said, “Don’t buy when snipers/insiders are dumping MEMEcoins on you, or you’ll lose heavily as this trader did!”
<h3 class="wp-block-heading" id="h-what-happened">What Happened?</h3>
The scheme involved two wallets, potentially belonging to the same person, withdrawing funds from the MEXC exchange and utilizing 35.4 <a href="https://thenewscrypto.com/solana-price-plummets-amidst-market-crash-can-sol-make-a-comeback/" target="_blank" rel="noopener noreferrer nofollow">SOL</a> (equivalent to $5,000) to purchase a massive 574.27 million COOL tokens.&nbsp;
<div class="wp-block-image">
 <figure class="aligncenter size-large"><img decoding="async" width="1024" height="262" src="https://thenewscrypto.com/wp-content/uploads/2024/04/image-68-1024x262.png" alt="" class="wp-image-97107" srcset="https://thenewscrypto.com/wp-content/uploads/2024/04/image-68-1024x262.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/04/image-68-300x77.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/04/image-68-768x197.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/04/image-68.png 1132w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">(Source: <a href="https://twitter.com/lookonchain/status/1784781035215208717" target="_blank" rel="noopener noreferrer nofollow">Lookonchain</a>)
 </figcaption>
 </figure>
</div>
Subsequently, these tokens were dispersed among multiple addresses, with Lookonchain tracing the sale of 22.81 million COOL tokens for 11,896 SOL (approximately $1.69 million) across five addresses.
Investors are warned against succumbing to such schemes, as evidenced by another trader who lost $152K in less than 30 minutes. This individual splurged 1,600 SOL to acquire COOL tokens, only to sell them for a mere 532.58 SOL. This incident underscored the risks associated with meme coin frenzies and the presence of opportunistic actors in the market.

Solana’s New Memecoin COOLCoin Dump Raises Concerns

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TheNewsCrypto

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