TEKNO – Leading decentralized exchange Raydium DEX on Solana blockchain, experienced a significant drop in its RAY token following a failed attempt to launch a new meme token via a Twitter launch tool, August 22, 2024.
This incident caught the attention of the crypto community and led to a sharp decline in the RAY token price, highlighting how quickly technical errors can impact the cryptocurrency world.
Raydium DEX on Solana
Raydium, known for its high liquidity within the Solana ecosystem, saw a 5% drop in the price of its RAY token after an attempt to launch a new meme token, CTO, via the Twitter account makenow.meme ended in confusion.
The launch used an automated Twitter tool that allows for the instant creation of Solana-based meme tokens in response to tweets.
However, the launch did not go as planned. The Raydium team acknowledged in a tweet that the experiment “didn’t go as expected.” The issue began when Raydium interacted with the Twitter account makenow.meme and successfully created the CTO token.
However, the confusion arose when vigilant users discovered that another token with the same ticker was also launched by a different account, Makememe.now.
Chaos erupted in the crypto market as traders and investors struggled to determine which of the two CTO tokens was legitimate and which was a potential scam.
This situation caused significant confusion within the community and led to the Raydium-launched meme token CTO plummeting more than 75% within less than 24 hours.
The market capitalization of this token dropped to below $1 million, sparking angry reactions from users who felt deceived.
Raydium responded to the situation with a tweet stating that “with all new technology, boundaries will be pushed—or inadvertently stumbled over.” While their intention was to introduce innovation in the crypto space, the end result of this experiment seems to have caused more harm than good.
Users and investors expressed their dissatisfaction with Raydium’s response, which was seen as inadequate in handling the situation.
One member of the Raydium community on Discord complained that they only received a brief tweet saying “oops” with no apology, refunds, or any other form of compensation.
“We only got an ‘oops’ tweet like clowns. No apology, no refund, no money put back into the dumped coin. Just a tweet saying ‘oops,’” said the member.
Additionally, the makenow.meme Twitter account was briefly suspended by Twitter on Friday morning, with its tweet minting function and replies restored shortly thereafter.
The project confirmed that the development team had to “change some parameters” to address the technical issues that occurred.
Currently, the price of Solana, the network on which Raydium operates, is also experiencing a decline. According to data from CoinGecko, Solana is trading at $163.85, down 2.6% in a day.
While Solana’s price drop is notable, the impact of the failed meme token launch is more clearly felt on the RAY token and the newly launched CTO meme token.
This launch failure highlights the risks involved in launching new crypto projects and how technical issues or operational errors can significantly affect the market.
While blockchain technology and automated token launch tools offer innovation and convenience, this incident serves as a reminder of the importance of caution and careful management in every step of crypto project development.
Raydium and its development team are expected to learn from this experience and take steps to prevent similar occurrences in the future.
The broader crypto community is also reminded to always perform due diligence and be cautious about potential risks in investing and participating in the cryptocurrency market.