Solana Co-Founder Pitches New Way Of Meme Coin Distribution
The co-founder of Solana, Anatoly Yakovenko, has suggested a new way in which meme coins should be distributed at their launch via Twitter. With this, Yakovenko addresses the problem that a large portion of all meme coins are scams and rug pulls that have a pre-mine in favor of the “inventors.”
Meme-Coins Should Be Treated Like A Lottery: Solana Co-Founder
The Solana co-founder compares meme coins to a lottery ticket, implying that they bring no value, but are only for making a quick buck. “In the best light possible, maybe meme coins are like zero loss lotteries,” Yakovenko said.
To make distribution fairer for all participants so that not only insiders and whales benefit, the Solana developer suggests that marketplaces listing meme coins should coordinate completely fair launches with no fees. This could prevent scam versions from popping up and constantly draining user liquidity.
In response to a Twitter user’s comment that 99.999% of meme coins are scams that are difficult to distinguish, Yakovenko suggested the creation of a “fair list.” The latter could use certain heuristics to identify active users and distribute the coin without premise. The Solana co-founder explained:
Come up with a “fair” list that uses some heuristics to identify active users and distribute the coin without any premise. One group of researchers could do the analysis and publish the list, and anyone can use it to launch.
Nevertheless, there were some criticisms of the Solana founder’s proposal. For example, users pointed out that there is a risk that the list would be fairly easy to manipulate, as the integrity of the list would be compromised after initial deployment through airdrop farming and the like.
However, the Solana co-founder argued that it doesn’t see a problem with this until there is a chain identity. In addition, users expressed concern about the vesting of contributors. However, the Solana founder argued that despite the possible lack of direct incentives for coin creators, the marketplaces themselves would benefit from the integration of these fair launch coins.
Still, the Solana founder’s final word was a warning:
Fair launch auction to start and everyone should expect it to go to zero eventually. That’s the point, treat it as a zero loss lottery.
SOL Price Trapped Below Trendline
At press time, the SOL price traded at $20.91 and was trapped below the trendline (black) that was breached to the downside on May 6. For now, SOL needs to hold the support at the 23,6% Fibonacci retracement level. If successful, it can attack the trendline and the 200-day EMA which are about to cross (at roughly $24.5).
Featured image from Play to earn diary, chart from TradingView.com