Book of Meme secures $100m presale as Solana becomes 4th largest crypto

The Solana-based E book of Meme (BOME) memecoin has reached $100 million in presales, contributing to Solana’s rise because the fourth-largest cryptocurrency by market capitalization and driving a market-wide uptick in Bitcoin and Ethereum costs after a short weekend dip.

E book of Meme is a memecoin on the Solana community launched by the pseudonymous artist Darkfarm1. Over the previous 56 hours, the token has rallied over 36,000% because it reached a peak market capitalization of $1.45 billion.

Analysts imagine that the memecoin’s success will be largely attributed to its controversial presale mannequin, which entails buyers sending funds (word: much like crowdfunding) to a pockets handle in trade for a weighted distribution of tokens as soon as it goes reside.

Cautionary tales

Nonetheless, some consultants warning that this mannequin carries vital dangers, as buyers aren’t assured to obtain tokens in return. Regardless of the considerations, the success of E book of Meme and different memecoins on Solana has caught the eye of outstanding figures nicely exterior of crypto communities on X.

David Sacks, co-host of the All In podcast, responded to feedback on one other memecoin named after him ($SACKS), clarifying that he didn’t shill his personal memecoin, nor did he create the $SACKS good contract. Sacks solely affirmed that he was “pleased” that the child he mentions within the tweet was capable of pay their scholar debt by elevating their Solana from 1 to 200 in an hour.

Tesla CEO Elon Musk, who recently said “okay tremendous, I’ll purchase ur coin” to a different All In podcast host Jason Calcanis, induced the affiliated $JASON coin to surge.

Anthony Sassano, an angel investor and Ethereum educator, likened presale fashions to “bidding ponzis” which have “a 99.9% likelihood of rugging.”

One other cautionary message from pseudonymous Web3Alert founder Nick tries to identify the “greatest downside with meme cash” with how “everybody expects each challenge to maneuver simply as quick and simply as risky.”

“On the spot gratification is one thing you study, that’s precisely what meme cash are instructing,” Nick states.

The surge in demand for Solana-based memecoins akin to BOME, NAP, and NOS (Nostalgia) has propelled the community to grow to be the fourth-largest cryptocurrency by market capitalization.

Prime movers within the memecoin house included Shiba Inu (SHIB), up 10.8%, DogWifHat (WIF), up 30%, and CORGIAI, up 8.5%. The tokens behind the chains these memecoins are issued on are additionally headed upwards, with Solana’s SOL up 10.8% to $205 and Avalanche’s AVAX up 15% to $61, in line with listed information from CoinGecko.

By extension, the final crypto market additionally skilled a major uptick. Bitcoin and Ethereum not too long ago noticed a dip over the previous weekend, however by Monday’s Asian buying and selling hours, BTC was again on the $68.5k degree, whereas Ethereum noticed $3,600 ranges stabilizing over 72 hours.

Macroeconomic elements affecting memecoin surge

This volatility is attributed to the arrival of latest regulatory frameworks from the Federal Open Market Committee (FOMC).

Nonetheless, whereas macroeconomic insurance policies set by the FOMC typically have an effect on Bitcoin and different cryptocurrencies, the extent of its affect could also be seen as negligible. In line with a 2020 research performed by Sujin Pyo and Jaewook Lee, the worth change after an FOMC announcement is “insignificant, indicating that the impact is negligible.”

The authors of this research additionally word that their findings are per the pre-FOMC announcement drift phenomenon. The research was funded by the Nationwide Analysis Basis of Korea.

Current US financial information signifies persistent inflation, resulting in greater rates of interest and a stronger greenback, which fares poorly for threat belongings. The subsequent FOMC assembly is in roughly two days, and the present goal charge is 525-550. In line with information from the CME Group’s FedWatch Instrument, there’s a 99% likelihood of rates of interest remaining unchanged.