In a remarkable show of community support and speculative investment, a Solana (SOL) address received over 53 million SOL, valued at more than $9.6 million, within just four hours. This influx of funds was triggered by an announcement from the address owner, known as Kero on X (formerly Twitter), about the pre-sale of a new token named SNAP on March 15.
The Appeal Behind Kero’s Funding Success
Kero’s request for a minimum of 1 SOL to participate in the SNAP token pre-sale quickly surpassed its 50 million SOL cap, leading to potential refunds for late contributors. Kero’s reputation as an NFT artist, known for creating the Rare Coco and Snappy Cocos collections, likely contributed to the eagerness of contributors. However, without the security of a smart contract escrow, participants have no assurance beyond Kero’s word that they will receive their SNAP tokens.
The Rise of Risky Meme Coin Pre-Sales
This event follows the trend of meme coin pre-sales initiated on platforms like X, where funds are directly sent to a promoter’s wallet without intermediary protections. The success of the Book of Meme (BOME) token pre-sale, which saw a user converting 50 SOL into 767 SOL following a 5,000% price increase, has inspired similar ventures, including Kero’s SNAP token.
Market Response and Potential Risks
The BOME token’s dramatic price surge and subsequent listing on centralized exchanges such as Gate.io, KuCoin, and MEXC underline the potential profitability of such ventures. However, the direct wallet funding model poses significant risks, with potential for loss if the promoters fail to deliver on their promises.
As the crypto community continues to explore novel fundraising models, the blend of enthusiasm for new projects and the speculative nature of meme coins calls for caution and due diligence from investors.
