Hundreds of meme coins launched on the Solana blockchain in the last few months have turned into a trap for retail traders, who are getting wiped out by cabals, bots, influencers, and coordinated insiders.
The tokens might look like a joke, but they’re designed to wreck anyone who isn’t already wired into the launch. Behind every pump is a system of wallets, social media figures, and low-effort token platforms working together to cash out fast before the price collapses.
The latest wave of Solana-based tokens includes coins tied to Donald and Melania Trump, and one linked to Argentina’s President Javier Milei. Donald’s token shot up to almost $74 just before his inauguration in January 2025. It’s now down 85%, according to CoinMarketCap. Melania’s coin is down 95%. The token called Libra, which used Milei’s face and branding, also crashed after launch. During that collapse, Solana’s native token SOL lost over 50% of its value. None of it was an accident.
The people launching these coins aren’t anonymous developers messing around for fun. They’re organized groups. They use bots to snipe tokens at launch. They preload wallets before announcements. They dump tokens the second price spikes. That’s how sniping works. One wallet that loaded up on the Trump coin was funded just hours before Trump posted about it on Truth Social.
KOLs push fake fair launches before dumping on retail
These schemes don’t just rely on bots. They rely on hype. That’s where KOLs, or key opinion leaders, come in. These are influencers with huge followings on platforms like X. They get access to coins early, usually at steep discounts, and then promote them to the public as fair launches. Most of the time, it’s not fair at all.
Mohamed Ezeldin, head of tokenomics at Animoca Brands, said the model is built on dumping. “They’re just focused on ‘how can I get in as early as possible and how can I exit as close to the top?’ In doing so, we’ve created a zero-sum game.” The public buys in after the coin is already inflated. The KOLs exit with profit. The rest are left with tokens that drop to near zero within days.
Dave Portnoy, founder of Barstool Sports, said during an X space on February 16 that he was offered Libra coins before launch. He was asked to promote the coin, including doing an interview with Milei. Dave said he turned down the offer and didn’t take any coins, but confirmed how the deals work. The creators offer early access in exchange for visibility. It’s how coins go viral before the public can even buy them.
Cabal networks control launches and manipulate token prices
Behind the scenes, meme coin launches on Solana are being coordinated by trading cabals. These are private groups that handle everything from creation to promotion to price manipulation. One of the most active cabals is Kelsier Ventures, led by Hayden Davis, who confirmed involvement with Libra, Melania, and Enron coins. Hayden’s name came up in a leaked call involving Moty Povolotski, co-founder of DeFiTuna, and Ben Chow, co-founder of the decentralized exchange Meteora.
Moty said on the call that Hayden and his family were sniping Enron tokens during launch. He later confirmed to Bloomberg that the audio was real. Ben didn’t respond to questions, but soon after the Libra fallout, he stepped down from Meteora, which had hosted launches for Trump, Melania, and Libra. The cabal networks often operate under different names, like Fantom Troupe and LA Vape Cabal, and most members stay anonymous. Hayden is one of the few who has gone public, mainly after being questioned by YouTuber Coffeezilla.
The launch platforms make it easier for cabals to operate. Pump.fun became the most-used tool for meme coin creation by removing technical barriers. Anyone can mint a token and list it for trading. That led to a flood of coins every day. But Meteora is the platform that’s been hosting high-profile launches. It runs under the Jupiter ecosystem, which also owns Moonshot—an app that lets users buy meme coins with credit cards or Apple Pay. That means even complete beginners can buy in without knowing what they’re getting into.
Early hype disguises a system built on losses
The first big Solana meme coin was Bonk Inu, which launched after FTX collapsed in 2023. Bonk wasn’t built for utility—it was a joke. But it exploded because traders saw an easy flip. That breakout led to more meme coin launches and brought attention back to Solana, which had been struggling after Sam Bankman-Fried’s collapse. Now it’s the top chain for meme coins, not because it’s better, but because it’s where the cabals operate.
Jordi Alexander, founder of Selini Capital, said meme coins were supposed to be different from VC-backed utility tokens. “Memecoin launches were being promoted as an antithesis to the ‘utility’ coins where VC insiders were able to invest at 100 times lower valuations and sell to retail after launch. In truth, memecoin launches often have as much — if not more — of an insider advantage.”
The insider edge is what kills retail. Meme coin prices are pumped during launch by bots and influencers, but the crash happens fast. Traders who don’t get in during the first few minutes are stuck. And even if they do get in early, the bots are faster. That’s how sniping works. It’s not luck. It’s code.
Every time a new token is announced, the same pattern happens. Early wallets buy up the supply. Influencers push it on X. Platforms like Pump.fun or Meteora provide the launch tools. And retail traders pour in. Then the dumps begin. Tokens lose 80-95% of value within days. The same thing happened with Trump, Melania, Libra, and Enron.
Despite the blowups, the meme coin market keeps running. At the end of February, the U.S. Securities and Exchange Commission said meme coins aren’t securities. They were compared to collectibles—assets with little or no use. That means there’s no requirement to register, and no protections for buyers. If you get scammed, it’s on you.
Cathie Wood, CEO of Ark Investment Management, said during a Bloomberg interview, “There will be some fearsome declines in the prices of some of these meme assets. And, you know, there’s nothing like losing money for the people to learn.” The SEC’s position removes any doubt. The rules won’t protect anyone trading meme coins. It’s every man for himself.
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