Crypto Traders Mistakenly Sending Solana Tokens to Memecoin Contracts
Crypto traders are facing significant losses as they mistakenly send Solana (SOL) tokens to memecoin contracts. This trend has resulted in millions of dollars being lost due to these errors.
Estimates and Notable Cases
Conor Grogan, a director at Coinbase, has estimated that traders have sent over $24 million in SOL to Solana-based memecoins token contracts. This figure surpasses the 6,743 ETH (approximately $22 million) that was removed from circulation as a result of Ethereum’s transition to a proof-of-stake network in 2022.
One of the most notable cases involved a trader who mistakenly sent 5,478 SOL (equivalent to $1.3 million) from Binance while attempting to purchase the “Book of Meme” token. Unfortunately, those funds are now permanently lost. Additionally, another individual recently transferred $114,000 to the “jelly-jelly” token contract, resulting in an irreversible loss.
Trader Outcomes and Losses
Despite these mistakes, Grogan highlighted that the outcomes for traders were only marginally worse than if their purchases had been successful. Many of the tokens involved in these errors have seen a significant decline in value, with losses reaching up to 75%. This is in comparison to the complete loss experienced by those who sent funds to the wrong addresses.