Memecoins
New Memecoin $IQ Hits $5 Million Market Cap in 1 Day, Plunges Following ‘Shilling’ Allegations
KEY POINTS
- Svanevik said he was testing makenowmeme, but warned investors not to “mimic” the token
- $IQ hit $5 million market cap a day after launch before plunging to $1 million
- Some cryptocurrency users said Svanevik was “promoting” the token
A new memecoin based on the Solana blockchain is generating a lot of interest within the cryptocurrency community after the token reached a market cap of $5 million in just one day after its launch.
Cryptocurrency analyst launches $IQ
Alex Svanevik, the founder of Nansen, which provides real-time data and insights to cryptocurrency, decentralized finance (DeFi) and NFT investors, launched $IQ on Wednesday, saying he was “testing a technology that a friend built.” He was referring to the memecoin Launchpad do now evenwhich “allows anyone to launch a meme coin directly from a tweet on X.”
IQ hits $5 million
The token saw its market value According to data from DEXScreener, Bitcoin hit $5 million a day after its launch. As the memecoin’s market cap has grown, Svanevik said it appears “smart money likes IQ.”
Some cryptocurrency users on X shared their thoughts on the token, with one saying that the new memecoin “must succeed“because if it doesn’t, Svanevik’s trust will be greatly reduced.”
One user said it appears the makenowmeme is “not very different” from the “pump and dump” activity on memecoin factory pump.fun.
Svanevik warned memecoin investors when he first posted about $IQ not to “mimic” the new token, a term used by cryptocurrency users when investors quickly buy cryptocurrencies without first learning about or researching them.
I’m testing some tech a friend built! don’t copy this thing, dammit 🙈
–Alex Svanevik 🐧 (@ASvanevik) July 31, 2024
Pump and dump
The token has since fallen, according to data from Terminal Gecko Memecoin now has a market cap of around $1 million and has dropped around 48% in the last six hours. Memecoin is still up over 1,000% in the last 24 hours. Memecoin investors continue to buy the token, but many are also selling it.
The price of IQ has dropped more than 40% in the last six hours. Terminal Gecko
Was Svanevik a ‘shilling’?
Some cryptocurrency users have accused Svanevik of “selling” his new memecoin, which is promoting a digital asset to artificially increase its price. “Selling” typically involves market manipulation and also the use of misleading or outright false information to encourage investors to buy.
Alex my friend, I still don’t see any social networks on dexscreener, I don’t see any CMC or CG. You better do shitcoining!
— VikingXBT (@VikingXBT) July 31, 2024
One user even went so far as to claim that the cryptocurrency developer minted 1 billion $IQ tokens before transferring 60% of the supply along with Solana ($SOL) tokens “to dozens of wallets.” He advised other crypto investors to “be careful.”
Svanevik has yet to respond to the allegations.
The risks of the Solana memecoin
Blockchain journalist Yohan Yun wrote about the risks of “aping” in Solana-based memecoins. He said investors should be wary that “memecoins are often created by the same people who invest in them — immature degenerates who have no idea what they’re doing.”
He then warned that most memecoins have no utility and are “just sentimental.”