Solana’s token minting frenzy loses steam as memecoins get torched

The surge in Solana token launches is losing momentum as some memecoins face increased scrutiny over their speculative nature and ties to scams.

Daily token launches on Solana collapsed to 49,779 on Feb. 19, tumbling from an all-time high of 95,578 on Jan. 26. This was the lowest count since New Year’s Day 2025, according to Solscan data.

Memecoins saw a resurgence in January after US President Donald Trump launched a pair of tokens, kicking off a wave of memecoin mania driven by political figures.

That cycle appears to have peaked. Argentine President Javier Milei also contributed to the downturn when his official X account tweeted about a memecoin called Libra (LIBRA), which he claimed was tied to Argentina’s economic growth.

Related: Argentine President Milei arrives in US amid fallout from LIBRA scandal

The post has since been deleted, and the token’s creators are facing accusations of insider trading and rug-pulling investors for $251 million within hours. Data firm Nansen estimates that 86% of LIBRA traders lost at least $1,000.

Memecoin drama weighs on Pump.fun

Pump.fun, the launchpad responsible for around 60% of Solana’s token launches, is feeling the squeeze. 

The platform recorded just 35,152 new tokens on Feb. 19, its weakest day since Christmas 2024. Revenue plunged to $1.69 million, the lowest since early November, according to Dune Analytics.

Related: Pump.fun’s memecoin freak show may result in criminal charges: Expert

Solana rode the memecoin wave to dominate industry metrics — including fees, active addresses and transactions — but reports suggest inorganic activities and bots often tied to memecoins were behind much of the activity.

Memecoin fallout hurts altcoins and births new SEC unit

Some industry watchers worry that the memecoin frenzy among retail investors may restrict capital and limit growth in the broader altcoin market. As Cointelegraph reported, 24% of the 200 top crypto tokens traded at their lowest mark in over a year.

Meanwhile, industry veterans have publicly spoken out against the recent surge of memecoin scams and insider trading activities tied to high-profile token launches.

Vitalik Buterin, Ethereum co-founder, recently expressed his disappointment in the blockchain community’s criticism of Ethereum’s intolerance of “casinos” in a Mandarin “Ask Me Anything” session.

Coinbase CEO Brian Armstrong claimed some memecoins have “gone too far,” to the extent that people are insider trading.

On Feb. 20, the US Securities and Exchange Commission announced the establishment of the Cyber and Emerging Technologies Unit to oversee misconduct and fraud involving blockchain and crypto. The unit will prioritize retail investor protection.

Magazine: Solana ‘will be a trillion-dollar asset’: Mert Mumtaz, X Hall of Flame