Avalanche (AVAX) memecoin project Sender has experienced a significant decline of over 70%.
The original fundraising Twitter account @4msener, which was closely associated with the project, is suspected to have been deleted. This unexpected move caused surprise and led to speculation that the account played a role in the sudden collapse of the project.
However, the founder of the project in question suddenly closed his Twitter account, strengthening suspicions that the funds were stolen and that the project was a rugpull scam.
Before the crash, Sender had managed to collect 93,000 AVAX, equivalent to $5.3 million. Of the total funds collected, 20,000 AVAX were used to provide liquidity to the project. However, the remaining 73,000 AVAX was transferred to three different addresses. The location and purpose of these transfers remain unclear, further raising concerns surrounding the project.
The success of memecoins on Solana seems to have whetted the appetite of other altcoin networks. However, many cryptocurrency influencers on the Solana network asked their followers to send them SOL and shared that they would distribute their own memecoins to their followers in return. A significant portion of these projects ended in major collapses or frauds.
*This is not investment advice.