Raydium’s RAY Token Suffers 75% Drop Following Meme Coin Launch Failure
Raydium, a decentralized exchange (DEX) on the Solana blockchain, has witnessed a significant decline in its RAY token following an unsuccessful attempt to launch a meme coin. As of the latest CoinGecko data, the RAY token is priced at $2.06, marking a 5.1% drop on the day and a 12.9% decrease over the past week. Despite this, it has seen an 11% increase over the past month. The token recently fell to a local low of under $2.
Failed Meme Token Launch
Raydium’s attempt to introduce a new meme token named CTO using the Twitter account makenow.meme encountered major issues. The account, which automates the creation of Solana-based meme tokens in response to tweets, was involved in launching CTO. However, the experiment did not go as planned. Users quickly discovered another token with the same ticker created by Makememe.now, leading to confusion in the market.
Impact on CTO Token
The confusion resulted in a drastic 75% plunge in the official Raydium CTO meme token’s value within 24 hours, reducing its market capitalization to below $1 million. The mishap has led to a flood of negative responses from the community, who criticized Raydium for its handling of the situation. “With all new technology, boundaries will be pushed – or inadvertently stumbled over,” Raydium acknowledged in a tweet, which failed to pacify the frustrated users.
Twitter Account Suspension
The makenow.meme Twitter account was briefly suspended early Friday morning. The suspension included the account’s tweet-to-mint functionality, which was restored shortly after. The project’s team later stated that they had to “change some parameters” following the incident.
Solana’s Current Market Position
As for Solana itself, the cryptocurrency is trading at $163.85, reflecting a 2.6% drop on the day, according to CoinGecko.
FAQ: Raydium’s RAY Token Slump After Meme Coin Launch
What caused the recent drop in Raydium’s RAY token price?
The RAY token experienced a significant drop after Raydium’s attempt to launch a meme token named CTO using the Twitter-based token launchpad, makenow.meme, did not go as planned. Confusion over multiple CTO tokens led to a sharp decline in RAY’s value.
How much did the RAY token fall?
The RAY token fell by over 75% in just 24 hours, dropping to a market cap of less than $1 million.
What was the issue with the CTO token launch?
The CTO token launch faced issues when another token with the same ticker was deployed by a different account, making it difficult for traders to identify the authentic CTO token. This confusion contributed to the drastic drop in RAY’s price.
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