Solana-based MemeCoin Catwifhat Overcomes Two 'Rug Pulls', Demonstrates Unyielding Resilience
Summary:
Despite surviving two devastating 'rug pulls,' which usually result in the downfall of a project, Solana-based memecoin Catwifhat (CIF) persists, demonstrating the strength and recovery potential of cryptocurrency's decentralized nature. After the initial project founder implemented a scheme that undermined the token, dedicated investors unified to form a new dev team that revived CIF, driving its market cap to $4 million. This evidenced the coin's resilience even when faced with a subsequent crisis that tanked its value by 76%. Today, CIF continues its ascent, with a market cap of $1.4 million. This narrative presents a unique case of resilience and a bright spot for victims of similar fraudulent practices, though such positive outcomes remain rare in the wider crypto landscape.
Catwifhat (CIF), a Solana-based memecoin, exemplifies the persistent resilience of some cryptocurrency projects even in the face of abrupt abandonment by its developers. CIF investor, NFT_Sloth, spoke with Cointelegraph about two significant events, both 'rug pulls', that took place within a twelve day period in December 2023. Despite the havoc they wreaked, Catwifhat has managed to maintain a dedicated following. Immediately following the launch, CIF’s founder reportedly flooded the market with tokens, 20% of their total supply, cashing in for 3.86 SOL (approximately $265 at the time) and significantly cutting back liquidity. The remaining investors rallied in response, establishing a new promotional team that quickly saw the token's value rise to a market cap of $4 million by December 23, just eleven days post disaster. But a second crisis hit the day after, when their primary liquidity provider pulled the rug again, wiping out 92% of the liquidity and resulting in a 76% drop in price. Once more, the dedicated dev team regrouped, reconstructing and pushing forward with their efforts. As of April 3, CIF secured a market cap of nearly $1.4 million. The initial 200 million tokens sold at launch would be valued over $250,000 today if they had been retained. Catwifhat's inspiration comes from the preceding Solana memecoin Dogwifhat (WIF), which was created in November 2023 to cash in on the 'Dogwifhat' meme's popularity on the X platform since 2019. Known for its connection to the Fortnite subculture and its subsequent modification in support of the Dogwifhat token, this meme was readily adopted and promoted by influencers such as 'Joji'. In the light of Dogwifhat’s success, Catwifhat (CIF) was introduced as hopeful successors, sadly marred by a developer’s exit scam just hours after its launch. The Catwifhat launch induced investor influx despite no marketing, likely due to its name resemblance to Dogwifhat. However, investor enthusiasm quickly plummeted when the project's developer dumped the entire token supply, totaling a meager $265 worth of SOL, causing CIF's value to decrease dramatically. Unfazed, Catwifhat’s community took control of the situation, with large investors forming a promotional team to help salvage the project. Unfortunately, they had to experience another rug pull when a member who controlled a significant amount of liquidity suddenly withdrew his investment. This action resulted in a significant drop in CIF's value. Yet again, the team managed to rebuild, establishing a new website for the project and launching a new Telegram group while also re-engaging social media engagement. This reinvigorated CIF community has future plans to set up a NFT marketplace using CIF as its native token. As of April 2, CIF was priced at $0.001451, with a market cap of $1,451,116. The CIF saga offers a ray of hope for victims of rug pulls, though it is important to recognize that this is not the norm. Data from Blockfence security platform indicates a significant increase in rug pull victims since April 2023, with more than 42,000 victims losing over $35 million.
Published At
4/2/2024 11:38:01 PM
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