On Thursday, analyst ZachXBT, pointed out in his X post that an ex-Fortnite player, under the name Serpent, was involved in a meme coin scam. By compromising accounts of over nine celebrities, including Usher, McDonalds, Andy Ayrey, and Wiz Khalifa, the player had taken about $3.5M in funds and gambled the proceeds in online casinos after converting them on Solana. This brings to light that the meme coin market should induce additional regulatory guidelines to safeguard from potential risks.
Originally, meme coins emerged in the market as a joke, but over time, they became an integral part of the cryptocurrency ecosystem. The first meme coin to be created was Dogecoin (DOGE). It was created in 2013 by two software engineers- Billy Markus and Jackson Palmer, who took inspiration from an internet meme, Doge.
As the market evolved, Dogecoin led the way for others like Shiba Inu, Floki, Pepe, Bonk, etc. Like DOGE, these have also gained traction and a significant user base in the market. The rally of these coins depends on several factors, including social media, which could affect its trajectory within seconds.
Top Meme Coin Gainers This Week: PNUT, PEPE, DOGE, and BRETT
Over the last seven days, several developments have been witnessed in the market. Dogwifhat (WIF) surpassed Bonk (BONK) in market cap and secured its position as Solana’s leading meme coin. Around the same time, Just a Chill Guy (CHILLGUY) sky-rocketed once it was listed on KuCoin and Bybit exchanges. Further, it gained momentum after a popular YouTuber, MrBeast, endorsed the coin. Such tokens, backed up by influencers, are portrayed as securities and considered an advantage for experienced and new users.
Although investing in meme coins was considered to be entertaining, with time, it has evolved to be scary. A notable example is the Pump.fun platform. Built on the Solana blockchain, it was designed to streamline the trading experience for users and encourage interaction. However, the platform came under scrutiny after some of its users complained of unethical behavior on the site.
Sources state that some miscreants had threatened to self-harm themselves if the token didn’t reach its target. This led to the platform removing its live stream feature to avoid unnecessary situations in the future. Due to such unhealthy practices, many investors are reconsidering their investments in meme coins.
