Traps in cryptocurrencies are increasing daily, and investors need to be more cautious. Especially in 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.
The Danger in the Solana Network
Cryptocurrency investors show extra interest in newly launched assets with low market value. They buy altcoins that reach a market value of 40,000 to 50,000 dollars, assuming they will reach millions or even tens of millions of dollars, even if they are useless. So, what is the result? As a result, they are 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. A significant portion of these experienced rug pulls and their prices went to zero. Moreover, these 106,000 altcoins do not include NFTs.
Due to the high-speed and low transaction cost structure of the Solana network, developers, especially scammers, are highly interested in it to quickly and efficiently launch new tokens. 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 dollars in the last 24 hours. The increasing demand in the DeFi space is beneficial for SOL Coin. Finally, cryptocurrency analyst Evanss6 said:
“We are witnessing the death of Solana. Under the pressure of the Feds, the Solana Foundation cannot use algorithmic trading strategies to defend this diagonal level. We are witnessing history.”
Solana and Its Future
Proving itself 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 exactly what they are doing.
