Raydium’s RAY Token Plunges After Failed Meme Coin Launch

Ecem EFE02/08/20242 Mins read279

Raydium’s Ray Token Plunges After Failed Meme Coin Launch

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.

Table of Contents

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.

For more up-to-date crypto news, you can follow Crypto Data Space.

Previous post XRP Price Rallies 35% in July: What’s Next for the XRP Ledger?

Next post MicroStrategy Expands Bitcoin Holdings Amid Q2 Losses, Announces $2 Billion Equity Offering

Written by

Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.