Benzinga - After the collapse of FTX Trading Ltd. in 2022, many wrote off Solana and thought that the project was dead. However, the project overcame the odds and has made, according to some, a complete comeback. The price recently surpassed the $200 level, and it is nearing its all-time high of $260 set in November 2021.
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Solana's resurgence has been primarily driven by the projects that are using its chain. While these protocols can range from a distributed computing network to artificial intelligence (AI) protocols, some of the most popular projects are meme coins.
Solana has become a playground for new meme coins, many of which have become extremely popular. Relatively new tokens, such as Bonk (BONK) and dogwifhat (WIF) have broken into the top 50 tokens by market cap and made many investors rich.
New tokens are also popping up seemingly every day. In the past week, a handful of new tokens were released through a new method called a presale.
The system works by having investors send SOL tokens to a wallet in exchange for an allocation of new tokens when the project is launched. The amount of tokens you receive depends on the initial amount you send and the overall demand for the project. Ideally, you would invest in a project with small amounts of initial demand to secure lots of tokens, but then see it pick up steam, resulting in huge gains. This is what happened last week with tokens BOOK OF MEME (BOME), Slerf (SLERF) and Snap (SNAP).
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BOME and SNAP are based on the Pepe meme, popularized in the early 2000s, while SLERF is based on a meme of a sloth. All of these tokens used a presale, bringing in investments of several million dollars, which soon turned into billions.
In terms of price increases, the tokens saw massive price swings and huge returns within hours of launch.
- BOME saw a price increase of over 37,000% within the first three days.
- SLERF went from $0.02 to nearly $1.40 within three hours, marking a gain of over 6,100%.
- SNAP increased by over 600% in three hours.
To become a millionaire with BOME, an initial investment of around $2,700 was required. For SLERF, you would have had to invest $16,400 to become a millionaire. Lastly, an investment of $159,000 into SNAP would have turned into $1 million.
While it may not seem like the brightest idea to invest huge amounts into such volatile assets, many people did. One example is Solana user sundayfunday.sol, who invested $72,000 in BOME, which turned into over $30 million. The investor took several million in profits and inverted the rest into other meme coins.
While most of the recent presale meme coins have fallen considerably in value, they are still well above their initial listing price.
Some are saying that this new presale phenomenon is the peak of meme coin degeneracy; users are throwing money at what could very well be a rug-pull scam. Others point out that people are flocking to SOL to buy these meme coins. So, which will it be? Will these meme coins continue to drive the price of SOL higher, or will they all come crashing down? Only time will tell.
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