Elon Musk‘s social media platform X has taken action to suspend an account known as makenowmeme, which was instrumental in enabling users to create memecoins with a single post. This account, which had a following of 15,000 users, was suspended on August 2 for purportedly breaching the platform’s rules. The account’s operators have expressed their intent to restore functionality and have temporarily halted the minting process.
What’s Happening in the Memecoin Space?
The makenowmeme system permitted users to generate posts on X using a structured format. These posts required the inclusion of a token name, a brief description, and optionally an image or video with the makenowmeme tag. This process facilitated easy creation and promotion of memecoins.
When a sufficient number of users engaged with these posts by making purchases, the liquidity was subsequently transferred to Solana’s decentralized exchange, Raydium, and then burned. A similar mechanism is employed by Pump Fun within the Solana ecosystem for memecoin operations. The leading token, Dogs, reportedly achieved a market value of $184,000. Additionally, the platform conducted MNM token airdrop events upon reaching specific market value and volume milestones.
Lookonchain revealed that early investors in these memecoin projects have seen substantial profits. One notable case involved an investor who earned approximately $800,000 worth of 4,721 SOL in just an hour from a token named CTO on makenowmeme. This individual initially bought 257 million CTO with 50 SOL and later sold 228 million CTO for 4,771 SOL, netting a profit of 4,721 SOL according to onchain data from August 1.
Details on the Subject
Prominent figures have also participated in the memecoin trend. Alex Svanevik, CEO of the onchain data analysis platform Nansen, launched a memecoin called IQ on makenowmeme on July 31. He advised followers not to follow his lead, stating he was testing technology developed by a friend. This token saw its market value and prices surge on its first day, according to DEXScreener data.
Key Takeaways for Investors
– **High Profits:** Early engagement in memecoin projects can yield significant returns, as evidenced by investors making substantial gains in short periods.
– **Platform Risks:** The suspension of makenowmeme highlights the potential volatility and regulatory risks associated with these platforms.
– **Market Trends:** Memecoin projects have been gaining traction, contributing to 2% of the total crypto market value, currently estimated at $48 billion.
Memecoin projects within the Solana ecosystem have seen notable gains in recent months, often exceeding the performance of the broader cryptocurrency market. According to CoinGecko, these projects currently constitute 2% of the overall crypto market value, amounting to $48 billion.