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Solana users are facing significant delays and network congestion following the launch of memecoins associated with former President Donald Trump and his wife, Melania. The tokens, named Official Trump (TRUMP) and Official Melania (MELANIA), debuted on the Solana blockchain just days before Trump's presidential inauguration, leading to a surge in trading volume that has strained the network's capabilities.
Key Takeaways
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The TRUMP and MELANIA memecoins launched on January 18 and 19, respectively.
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Network congestion has resulted in transaction failures and server errors for users.
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Concerns have been raised regarding the token distribution and market volatility.
Memecoins Launch Causes Network Strain
The launch of the TRUMP and MELANIA tokens has attracted considerable attention, but it has also led to operational challenges for the Solana network. Users reported issues such as “500 Internal Server Errors” and delays in transaction processing, particularly during peak trading times.
Solscan 500 internal server error report. Source: MGpai
Solscan, no transactions for 30 minutes. Source: Dave
The congestion was evident when Solana’s blockchain explorer showed no new transactions for a significant period, indicating a slowdown in network activity. This situation has reignited discussions about the scalability of Solana's blockchain, especially in light of a major outage earlier 2024 year that required validators to restart the network.
Token Distribution Raises Red Flags
While the memecoins have gained mainstream appeal, the distribution of the MELANIA token has raised concerns among investors. According to the token's website, 35% of the tokens were allocated to the team, with 20% each for the treasury and community, and only 15% available to the public. However, blockchain analytics revealed that nearly 90% of the token supply was held in a single wallet, contradicting the stated distribution.
This discrepancy has led to skepticism about the legitimacy of the token's launch and its long-term viability in the market.
Market Impact and Volatility
The launch of the TRUMP token saw a dramatic market reaction, with its market cap dropping by $5 billion within 40 minutes of the MELANIA token's debut. The price of TRUMP fell from $74.60 to $45.90, reflecting the volatility that often accompanies new memecoin launches. As of the latest updates, the TRUMP token was trading at $57.50, down 3.3% in the past 24 hours.
Sources
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Solana users hit by delays after Trump memecoins debut, Cointelegraph.