Allegations of insider trading at Solana mecoins
In the past 24 hours, Solana's (SOL) share price has fallen nearly eight percent, bringing its total market capitalization currently to $81 billion.
In the past 24 hours, Solana's (SOL) share price has fallen nearly eight percent, bringing its total market capitalization currently to $81 billion. The sharp correction appears to be the result of the cooling memecoin hype, at least according to cryptotrader Xremlin. He points to the recent launch of TRUMP, MELANIA and LIBRA as the driving force behind the decline.
But according to another prominent cryptotrader, Ash Crypto, there is more behind the price drop. He argues that insiders have exploited the launch of these memecoins to extract maximum profit from the community. "Insiders have profited and manipulated the game," he writes on X. "Now that people realize that, Solana and SOL memecoins are collapsing."
Billion-dollar profits for insiders
Data from DeFiLlama suggest that these alleged insiders are among the $3.6 and $6.6 billion have earned from Solana memecoins. The allegations of large-scale market manipulation arose after criticism of venture capitalist Kelsier, who is seen as the driving force behind the controversial launch of memecoin LIBRA. In this coin, many investors lost large sums of money.
Currently, SOL's stock price is hovering around the 166 dollars. Over the past 30 days, the currency has risen by 39 percent dropped and he stands 43 percent below its all-time high of $294.
New share price pressure on the way?
To top it off, Solana is waiting for March 1 a big token unlock, where 11.2 million new SOL tokens - about 2.3 percent of the total circulating volume - enter the market. This could further increase sales pressure and cause the price to fall even further.
