Memecoins
Coin maker Meme Solana has purchased 95% of its supply
Arman Shirinyan
Many Solana meme coins have questionable distributions, but this is certainly an extreme case
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Solly memetic currency is one of the latest additions to the Solana meme coin landscape. However, a look at the project’s on-chain activity reveals a worrying fact. Its developer made a huge purchase, capturing 95% of the meme’s supply in his hands, as reported by LookOnChainwhich opens up numerous possibilities for manipulating the market.
Based on recent data, four wallets linked to the Solly development team purchased 950 million SOLLY tokens for 152 SOL, or approximately $24,000. With this acquisition, which represents 95% of SOLLY’s total offering, the developer gains almost total control over the token’s market dynamics. It is risky for users to have a single entity control such a large portion of the token supply.
With such a high level of control, the developer can create pump and dump schemes, artificially inflate prices, or have undue influence on the distribution and liquidity of tokens. The 950 million SOLLY tokens purchased were then divided across multiple wallets.
This division into multiple portfolios can increase opacity and possible risks for investors by making it difficult to follow the precise movements and intentions behind these transfers. It maintains effective control centralized while generating the appearance of decentralization. Solly developers are anonymous and can take any type of action without suffering consequences, so it is important to exercise caution if you keep any tokens.
Projects where one company controls a disproportionate amount of the supply should raise red flags for investors because these situations often pose greater risks of unfair trade practices and market manipulation. Despite the fact that even top-tier projects can have a distribution where one entity holds a respectable amount of the supply, none of their shares reach the 95% extreme.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.