Solana’s New Memecoin COOLCoin Dump Raises Concerns

• Solana experiences high volatility, including large transaction failures and scam projects.
• The COOL Coin in Solana’s ecosystem mirrors the trend of meme coins but swiftly becomes embroiled in controversy due to scams and fraud.

Solana, hailed as the top blockchain of 2024, is facing both accolades and scrutiny as it grapples with significant highs and alarming lows. 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 meme coin 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!”

What Happened?

The scheme involved two wallets, potentially belonging to the same person, withdrawing funds from the MEXC exchange and utilizing 35.4 SOL (equivalent to $5,000) to purchase a massive 574.27 million COOL tokens. 

(Source: Lookonchain)

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.