While not unique to Solana, the recent event involved the BONKKILLER Solana meme token, which registered a $327 trillion market capitalization. But how is such possible?
To bring things into perspective, Bitcoin had a market capitalization of $1.24 trillion at press time.
Solana meme token $327 trillion market cap tokenomics
According to the data analytics platform Birdeye, BONKKILLER now has 1,143 holders and sells at $32.71. The meme token has a total supply of 10 trillion, valuing it at $327 trillion.
The catch? It’s a honeypot trap, and no one can sell it.
Image source: https://birdeye.so/token/mDBNSUv8LZzktDAGpDJVRWSfCpCjgeDeHYkeHtz97ka?chain=solana
The token’s creator has freeze authority over the contract; this means they can freeze the token from being transferred. The creator also has the authority to arbitrarily change the token information, such as its logo, name, and website address.
The Solana meme coin first launched on 27 April and started trading at a modest $0.063265. Over the next few days, the coin rapidly gained value as its creator maliciously activated the token freeze authority over the contract, which explains the consecutive green candles on the chart.
Most investors discovered they couldn’t move their coins when it was too late. The top 10 holders of the token held 99.97% of the token supply, with the creator holding 90.89%, explaining the limited token’s supply on the market.
BornKiller/ USD transaction history. The last transaction, ‘type-remove,’ means a user has removed part of the liquidity from the pool. Removed transactions on a newly launched token are a telltale sign of a rug-pull.
Many decentralized exchanges go the extra mile to notify traders of shady token contracts, but they still lose millions of money. The same case applies to BONKKILLER, as more users continue to purchase the token.
What are Honeypot Scams?
As the name suggests, Honeypot scams lure investors using fake promises of high returns. Fear of Missing Out (FOMO) and initial market hype drive the coins’ initial bull cycle before the creator pulls the plug by activating freeze authority over the contract.
BONKKILLER is the latest example of a honeypot scam tricking gullible users. There have been multiple instances of scams targeting famous projects. For instance, for Shiba Inu, scammers go as far as creating Telegram communities while claiming false associations with K9 Finance or the Shibarium project.
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