Are you aware of the recent Solana new tokens flood? The Solana network has seen a staggering increase in the number of new tokens minted this month, exceeding any previous records. In the past fortnight alone, Solana has witnessed the creation of 72,202 new tokens using the SPL token standard, as per data from Solscan. This is a whopping 71-fold increase compared to the number of tokens created during a similar period in October.
Unprecedented Token Creation on Solana
The daily statistics for new token creation on Solana have consistently been around four times higher than any previous records since its inception in 2020. This dramatic increase in token creation cannot be solely attributed to organic growth in network activity. Even if we account for a two or three-fold increase in new SPL token creation due to a general uptick in activity, it still leaves thousands of tokens unaccounted for each day.
Investigation into the Token Surge
Slorg, a pseudonymous blockchain investigator and the project lead of Solana NFT tool Sol Incinerator, stumbled upon this enigma when a counterfeit token for Sol Incinerator surfaced on Solana. On investigating the on-chain transactions, Slorg and their team discovered that the imposter had created several new SOL coins on the same day, manipulated their prices, and then moved on to the next set of tokens.
Slorg further pointed out that many of the 7,000 tokens being launched daily are churn type tokens, created to exploit people who keep an eye on the ‘recent’ tab on Birdeye, a popular crypto trading data aggregator. Slorg’s tweet revealed that they found wallet trails where one individual launched 300 tokens in a single week.
The Impact of the Token Flood
It’s important to note that not every new Solana meme coin is a short-lived scam. Some, like BONK, have adhered to their intricate roadmaps and gained traction. However, the success of these tokens, coupled with Solana’s broader resurgence, seems to have attracted deployers who are flooding the ecosystem with counterfeit coins, lured by the prospect of making quick money.
As Slorg puts it, many people argue that this is the entire point of crypto, but it can be quite disheartening, as the potential for the industry to be so much more is evident.
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