Community Discontent Erupts Over $SED Memecoin's Allocation Cut amidst Crypto Frenzy
Summary:
The recent launch of the Polkadot-based memecoin, $SED (SED), has sparked community backlash after the initial airdrop allocation was slashed from 100% to just 5%. The decision was made to extend the financial lifespan of the coin, according to an anonymous developer. This occurred during a surge in retail interest in memecoins. Despite the disappointment among investors, 85% of the SED airdrop supply has been claimed. Other blockchain networks, such as Solana and Avalanche, are also capitalizing on the memecoin frenzy.
The recent reduction of the initial allocation for the freshly dropped Polkadot-based memecoin, $SED (SED), has significantly ruffled the feathers among its community. Originally, the entire token supply was set for allocation, but it's now been slimmed down to a mere 5%. This decision, as per the memecoin's anonymous developer, Giotto De Filippi, was taken to prolong the coin's financial viability. On March 24, during an X Spaces session, he explained that once the entirety of the coin is distributed, they would be out of options, thus it made better sense to distribute less and make use of the remaining tokens to fund the project, especially given the community's reluctance to finance it.
SED took off on March 23, with Polkadot community members introducing the memecoin in a bid to attract interest amidst the ongoing memecoin fervor and draw attention to the Polkadot ecosystem. DOT (Polkadot) investors qualified for 36 SED tokens for every single DOT in their possession.
However, this excitement quickly deteriorated as a result of the team's decision to cut back on the initial airdrop allocation. Orlando, an anonymous crypto investor, expressed his disappointment in a post on X on March 23, stating his hope that the team would find ways to make up for these oversights in the long run. He revealed that, like many others, he held DOT spurred by the anticipation surrounding the experimental SED memecoin, but felt let down given how the events unfolded.
As of now, over 85% of the SED airdrop supply has been claimed, with over 1.3 million eligible addresses according to Dune data. The airdropped supply of SED is halted until future listings on the exchange, in order to control selling pressure. This feature differentiates it from other popular memecoins.
The rolling out of this Polkadot-based token is happening concurrently with a heightened retail interest in memecoins. Just last week, meme token Book of Meme (BOME) witnessed over 1,100% growth on the weekly chart, and momentarily became the 130th largest cryptocurrency by market capitalization.
BOME is part of a bunch of new memecoins that have garnered funds for unreleased coins via a contentious presale model. These Solana-based memecoins' presales raised more than $100 million worth of SOL (Solana's native token) in just the three days leading up to March 18.
Several other blockchain networks are also trying to cash in on the craze. On March 21, the Avalanche Foundation announced a $1 million liquidity mining rewards program for Avalanche-native memecoins and community-controlled tokens.
Published At
3/25/2024 2:04:14 PM
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