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Avalanche meme project Sender drops over 70% amid fundraising controversy



Avalanche meme project Sender drops over 70% amid fundraising controversy

The Avalanche-based MEME project, Sender, has plummeted by over 70% in a sudden downward spiral. This drop comes on the heels of suspicions surrounding the original fundraising X (Twitter) account, 4msener, which reportedly deleted most of its posts, sparking fears of a possible rug pull within the community.

Sender initially raised an impressive sum of 93,000 AVAX, equivalent to approximately $5.3 million. However, irregularities have emerged regarding the allocation of these funds. Of the total amount raised, 20,000 AVAX were allocated towards adding liquidity, while the remaining 73,000 AVAX were transferred to three separate addresses, sparking further scrutiny.

The recent decline in Sender’s value has raised doubts among investors about the project’s integrity. Many are now looking for explanations from the team behind 4msener and are demanding transparency regarding fund allocation and usage.

On Twitter, @0x_llyc tagged the FBI in the only remaining post by @4msener on his X account. In response, @Crypto0xsimon commented, “Listen to your numbness,” highlighting the lack of clarity provided by @4msener regarding the fundraising. Additionally, @JPTouZheLe warned that @4msener must either refund the collected liquidity or face consequences.

Avalanche is a blockchain platform designed to address the blockchain trilemma of scalability, security, and decentralization. It operates through three interconnected blockchains: the X-Chain for managing assets, the C-Chain for smart contracts and tokens, and the P-Chain for coordinating validators and creating subnets.

Avalanche’s consensus protocol enhances security by conducting random checks on validators’ transaction confirmations, increasing transaction validity. The platform processes thousands of transactions per second with low fees, making it efficient and cost-effective. 

Over the past three months, there has been a significant surge in the emergence of memecoins within the cryptocurrency sphere. These digital assets, like PEPE, BONK, and Dogwifhat, do not have intrinsic value but gain popularity through humor, community engagement, and endorsements from influential figures. 

The meme coin trend gained momentum with the success of Dogecoin and has since evolved with new tokens like PEPE and Dogwifhat entering the scene. These meme coins leverage meme culture to attract investors and enthusiasts, offering a blend of entertainment and investment opportunities. 

Despite their satirical nature and lack of real economic value, meme coins have garnered significant attention in 2024, providing an engaging aspect to the cryptocurrency market. Most importantly, 2024 has seen more memecoins coming in as presale projects where anyone can buy an amount of token before it launches.

Some of the popular memecoins that have trended in 2024 include Book of Meme ($BOME) on Solana which got to over 1000% in its first week; and Wen (WEN), another Solana-based meme token that was airdropped to users of the Jupiter DEX,

Looking at the Avax space, Coq Inu (COQ), Husky Avax, ShibaVax (SHIBX), and Kimbo have played the memecoin savior in the ecosystem.

It’s also worthy to note that in 2024, Avalanche has made significant strides in the realm of meme tokens, with the Avalanche Foundation actively engaging in the acquisition and support of meme coins native to the Avalanche blockchain. 

The Foundation has established an “eligibility framework” that outlines specific criteria for meme coins to be considered for investment. These guidelines require meme coins to be independent from their creators, native to the Avalanche blockchain, and meet certain liquidity and trading volume thresholds. 

The Foundation stated that meme coins must have at least 2,000 holders, with the top 100 owning less than 60% of the supply, more than $200,000 in liquidity supplied by at least 50 providers, and at least a $1 million market cap, among other requirements.

The Avalanche Foundation has also disclosed its holdings of meme coins, including Coq Inu, Gecko, Kimbo, NoChill, and Tech, all of which are native to the Avalanche blockchain and have met the Foundation’s eligibility guidelines.

Read also; Top five (5) memecoins on Avalanche

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