In the wake of the historic approval of a spot Bitcoin ETF by the Securities and Exchange Commission in the United States, members of the Solana community swiftly seized the opportunity.
They created several ETF-themed meme coins that experienced rapid and substantial spikes in value, only to start deflating minutes later.
ETF, a Solana meme coin that humorously alludes to ‘Electric Turkey Frier,’ was introduced on the Solana-based automated market maker (AMM), Raydium, at 4 PM EST on January 10 2024. This timing coincided with the widely anticipated SEC decision on Bitcoin ETFs.
Following the swift approval posted on the SEC’s website just minutes later, the ETF token experienced an astonishing surge of 30,800%, reaching a valuation surpassing two cents. A few hours since the debut of the ETF coin, the token has generated a trading volume of $775,000, involving just over 1,900 unique crypto wallets.
As expected, following the initial surge and triumph for Bitcoin ETFs, the ETF meme coin experienced significant volatility. It relinquished a substantial portion of its gains, and at present, it has a market capitalization hovering around $93,000, with $23,000 worth of liquidity.
ETF which was created at midnight Thursday is currently trading at $0.005797Meme coins such as ETF are frequently subject to ‘rug pulls’ where their often anonymous creators withdraw liquidity leaving investors with significant losses.
Another token introduced on Solana following the ETF is BTCETF which has also undergone significant fluctuations, experiencing both remarkable highs and lows in the past few hours.
Following the SEC’s announcement, BTCETF experienced an extraordinary surge of 43,000%, reaching an all-time high of $0.0002.
DeFi enthusiasts have invested $540,000 in the coin thus far. However, within minutes, the coin began to experience a sharp decline. It currently holds a diminishing market capitalization of $69,000, with liquidity reduced to just $12,000.
Meme coins frequently leverage breaking news events to promote speculative tokens associated with exceptionally high levels of risk. In a notable example from November 2023, a coin created to commemorate the passing of Charlie Munger, the outspoken crypto critic and vice chairman of Berkshire Hathaway, attracted millions in investments before ultimately crashing to zero.
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