Concerns have emerged within the crypto community regarding what some are calling peak degeneracy, as memecoin founders have amassed millions of dollars worth of Solana (SOL) through token presales over the past 72 hours.

Exorbitant Investments in Memecoins

According to aggregated data observed by Cointelegraph and cited by crypto researcher 0xGumshoe, crypto traders have poured approximately $100 million worth of Solana into new Solana memecoins within the past three days alone.

These tokens have been raising funds for unreleased coins through a controversial presale model, with notable examples including Book of Meme (BOME), $NAP (NAP), and Nostalgia (NOS).

The Rise of Memecoin Presales

The enthusiasm surrounding memecoin presales intensified with the launch of Book of Meme (BOME), which utilized the contentious crowdfunding model.

Initiated on March 14 by pseudonymous artist Darkfarms1 with an initial valuation of around $4 million, BOME surged over 36,000% to achieve a peak market capitalization of $1.45 billion in less than 56 hours.

One early investor, sundayfunday.sol, a close associate of BOME's creator, turned an initial investment of 420.69 Solana — valued at $72,000 at the time — into an astonishing $32 million in less than three days.

Concerns Over Presale Model

The presale model involves crypto investors sending cryptocurrency to a designated wallet address and receiving a weighted distribution of tokens when the token becomes operational.

According to Coin Telegraph, there is no guarantee that investors will receive tokens in exchange for the cryptocurrency sent to a presale wallet address, making presales a favored avenue for fraudsters to exploit unsuspecting investors.

According to a Coinpedia report, sentiment surrounding memecoins remains mixed, underscoring uncertainty regarding the sector's future price trajectory. Additionally, the growing hype surrounding Solana-based tokens suggests a favorable long-term outlook for their price.

Criticism of the presale model has been voiced by Ethereum educator Anthony Sassano, who condemned the practice, asserting that investors who engage in such activities are "dumb as hell."

Memecoin Frenzy Goes Mainstream

The frenzy surrounding memecoins has transcended the confines of the crypto space. Entrepreneur David Sacks, renowned for his role as the co-host of the All In podcast, witnessed the hype surrounding his memecoin escalate, resulting in significant profits for some users.

Pseudonymous X user DeFiRabbitHole noted that when Sacks began promoting his memecoin on X, they anticipated a surge in value. Subsequently, Elon Musk's tweet expressing interest in fellow All In podcast host Jason Calcanis's coin led to a substantial increase in the affiliated JASON coin's value, yielding significant returns for early investors.

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