Solana Degens Create ETF Meme Coins After SEC Approval
Within moments of the Securities and Exchange Commission’s historic approval of a spot Bitcoin ETF in the United States, Solana degens took advantage by creating ETF-themed meme coins that quickly surged in value before starting to deflate. One of these coins, called ETF, debuted on the Solana-based automated market maker (AMM) Raydium at the exact time the SEC decision was expected. It skyrocketed by 30,800% to a valuation above two cents. In just a few hours, the token generated $775,000 in trading volume from over 1,900 unique crypto wallets.
Fluctuating Value and Risky Nature of Meme Coins
However, shortly after the initial surge, the ETF meme coin began fluctuating wildly and lost much of its gains. Currently, it has a market capitalization of around $93,000 and $23,000 worth of liquidity. Meme coins like ETF are often subject to “rug pulls” by their anonymous creators who withdraw liquidity, leaving investors with losses. Another meme coin called BTCETF also experienced significant highs and lows following the SEC’s announcement.
Meme Coins Capitalize on Breaking News
Meme coins frequently take advantage of breaking news to pump risky tokens. In November, a coin commemorating Charlie Munger’s death gained millions before crashing to zero. Similarly, a “CZ” token surged 18,000% after Binance founder Changpeng Zhao pled guilty to violating anti-money laundering laws.
Hot Take: The Volatile World of Meme Coins
The creation of ETF-themed meme coins on Solana following the SEC’s Bitcoin ETF approval highlights the wild nature and risks associated with meme coins. These tokens can experience rapid surges in value, only to quickly deflate. Investors should exercise caution and be aware of the potential for rug pulls by anonymous creators. While meme coins often capitalize on breaking news, they remain highly volatile and carry significant levels of risk.
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