Suno Defends Use of Copyrighted Music for AI Training Amid RIAA Lawsuit
August 2, 2024
Crypto Executives to Meet with White House Aides Next Week: What to Expect
August 3, 2024X Suspends Memecoin Creation Account Amid Controversy
Elon Musk’s social media platform X recently suspended an account named “makenowmeme,” which allowed users to create memecoins with a single post. The account, boasting 15,000 followers, was taken down on August 2 for allegedly violating X’s rules. As a result, the memecoin minting feature has been paused.
The “makenowmeme” system enabled users to generate memecoins by posting a specific format on X. Users included a token ticker, a description of the coin, and tagged @makenowmeme, with options to attach images or videos. Once sufficient purchases were made on the bonding curve, liquidity was provided on the Solana decentralized exchange Raydium and subsequently burned, mimicking the pump.fun mechanism used for Solana memecoins.
Market Performance and Profits
Before its suspension, “makenowmeme” saw notable activity. The top token, “Dogs,” had a market cap of $184,000. Additionally, the platform offered MNM token airdrops upon reaching certain market cap and volume milestones. According to Lookonchain, traders engaging with these memecoins experienced significant gains. For instance, one trader earned approximately $800,000 by trading a token named CTO. This individual spent 50 SOL to acquire 257 million CTO tokens, later selling 228 million for 4,771 SOL, realizing a profit of 4,721 SOL.
The memecoin craze extended to prominent figures as well. Alex Svanevik, CEO of on-chain analytics platform Nansen, launched his own memecoin called IQ on “makenowmeme” on July 31. Svanevik described the move as a test of technology, advising followers to be cautious.
On the day of its launch, the IQ token saw a significant surge in both price and market cap, as noted by DEXScreener.
Memecoins’ Role in the Crypto Market
Memecoins have been making headlines with significant gains in the Solana ecosystem, particularly in late July, outpacing broader market trends. Currently, memecoins represent 2% of the total cryptocurrency market capitalization, amounting to $48 billion, according to CoinGecko.
As the memecoin trend continues to evolve, the suspension of “makenowmeme” highlights the volatile nature of these digital assets and the regulatory challenges faced by platforms supporting them.
