A trader lost $454,000 in an hour due to a poorly timed memecoin investment. Centralization on Solana raises concerns about memecoins and scams, according to Edward Snowden.

In 2024, the surge of memecoins has not only captured the market’s attention but also highlighted the accompanying risks. Such concerns were illustrated by a staggering loss incurred by a cryptocurrency trader. New memecoin ANT a flop show? This investor’s ambitious investment into a newly launched meme coin, ANT, backfired dramatically, leading to a loss of approximately $454,000 within a mere hour. After investing 3,396 Solana [SOL], equivalent to about $587,000, to acquire 14.7 million ANT tokens in one swift transaction, the trader quickly capitulated.

As reported by the on-chain analytics platform Lookonchain, “Less than 40 minutes later, he capitulated and sold it all for just 773 $SOL($134K).” Details of the loss The transaction took place on the Solana blockchain via the Raydium automated market maker, with ANT’s allure rooted in its distinctive origin. As the inaugural coin launched on SOL utilizing AnthropicAI’s Claude feature, ANT was positioned as an innovative product of artificial intelligence, capturing significant attention. However, despite its initial excitement, the token has recently faced a significant sell-off. Although the precise factors contributing to this downturn are unclear, it is apparent that the trader’s poorly timed investment aligned with a broader market decline for ANT. Moreover, it also reflected the inherent volatility of the memecoin landscape. Hindsight of memecoin’s rise This downturn in ANT coincided with a notable uptick in the memecoin market. According to the latest CoinGecko data, this ANT boasts a market capitalization of $75.4 billion, reflecting a 1.6% change in the past 24 hours. This resurgence has paved the way for several celebrity-backed memecoins. One of which includes the recent launch of $WAP by Grammy-winning rapper Cardi B. However, rather than bolstering confidence in the cryptocurrency space, these developments have primarily led to FUD, along with a surge in “pump and dump” schemes, scams, hacks, and significant financial losses. All of these highlighted the risks inherent in the speculative nature of memecoins. Solana takes center stage in memecoins scams These issues surrounding memecoins often lead back to the Solana blockchain, which has come under scrutiny for its centralized approach. Recently, Edward Snowden, a former NSA intelligence contractor and whistleblower, expressed concerns about this centralization, suggesting that while it may enhance efficiency, it has also become a hub of memecoins and scams. According to Snowden, the prioritization of speed and performance on SOL has inadvertently created a breeding ground for questionable projects. This raised alarms about the long-term viability and security of the blockchain as a whole.

Read Solana’s [SOL] Price Prediction 2024–2025

As expected he put it best when he said, “But nobody is using it, except for memecoins and scams. Because if anybody puts anything significant on it, then the states begin moving towards it.”

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