Solana DEX Raydium Sees RAY Drop 5% After Twitter Meme Coin Misfire

Raydium, a decentralized exchange (DEX) on Solana, faced significant issues following its attempt to launch a meme coin using the Twitter tool makenow.meme. The mishap led to a sharp decline in Raydium’s RAY token price.

According to CoinGecko, Raydium’s RAY token fell to $2.06, a decrease of 5.1% on the day and 12.9% over the week, though it remains up 11% for the month. The token had briefly dropped below $2 before recovering.

The trouble began when Raydium used makenow.meme, a Twitter account that generates Solana-based meme coins from tweets, to launch its CTO token. However, the process did not go smoothly. Another token with the same name, created by Makememe.now, confused traders and led to the official CTO token’s value plummeting by over 75% within 24 hours, reducing its market cap to under $1 million.

Raydium admitted on Twitter that the launch "didn't exactly go as expected" and acknowledged the issue, stating that "boundaries will be pushed—or inadvertently stumbled over" with new technology. This response was met with frustration from users who felt neglected and left out of pocket. One Discord user criticized the situation, saying, "We get an oops tweet like clowns. No apology, no refund, no money put back into the coin that got dumped. Just a tweet saying oops."

The makenow.meme account was briefly suspended by Twitter but later restored, with the developers adjusting some parameters. Meanwhile, Solana is trading at $163.85, down 2.6% on the day, according to CoinGecko.

source: https://decrypt.co/242877/solana-dex-raydium-ray-twitter-meme-coin