Traps in cryptocurrencies are increasing daily, and investors need to be more cautious. Especially on networks like Solana, known for low transaction fees, investors face more threats. In just one week, 106,000 new altcoins were launched on the Solana network. And yes, most of them were scams.
Danger on the Solana Network
Cryptocurrency investors show extra interest in newly launched assets with low market value. They buy altcoins assuming they will reach millions or even tens of millions in market value, even if they are useless. The result? They get scammed 99% of the time.
According to data from the portfolio platform StepFinance, over 106,000 tokens were launched on the Solana network in just one week. Most of these experienced rug pulls and their prices went to zero. Moreover, these 106,000 altcoins do not include NFTs.
Due to Solana’s high-speed and low transaction cost structure, developers, especially scammers, are keen to launch new tokens quickly and efficiently on it. Jakey, one of the founders of CUBE, said:
“Solana is a platform created by people. Once you understand this, everything will be fine.”
With the increase in new tokens on Solana, the network’s Total Value Locked (TVL) rose by $166 million in the last 24 hours. The growing demand in the DeFi space benefits SOL Coin. Finally, cryptocurrency analyst Evanss6 said:
“We are witnessing the death of Solana. Under federal pressure, the Solana Foundation cannot use algorithmic trade strategies to defend this diagonal level. We are witnessing history.”
Solana and Its Future
Proven in cheap and fast transactions, Solana is currently the busiest smart contract platform in terms of transaction count. These are great details, but if investors continue to show such interest in new altcoins with very low market value, more capital will flow to scammers.
Recent reports indicate a significant increase in fraud cases on the Solana network. This turns the Solana network into a quagmire, especially for inexperienced investors who do not know what they are doing.
