Solana DEX Meteora Faces Lawsuit Over Meme Coin Scheme
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- Meteora DEX lawsuit for alleged pump-and-dump practice impacts Solana users.
- Investors claim losses of over $69 million.
- Reputation of Solana DeFi ecosystem affected by allegations.
Meteora and Kelsier Labs Sued for Pump-and-Dump
The lawsuit targets Solana DEX Meteora and involves allegations of a pump-and-dump scheme surrounding the $M3M3 coin. CEO Benjamin Chow and Kelsier Labs face accusations from investors for market manipulation. Previous events like LIBRA and MELANIA cements patterns of insider manipulation.
Investors Report Losing $69 Million in Scheme
Investors claim over $69 million in losses due to purported market manipulation. The reputation of the Solana DeFi ecosystem suffers as a result. Such allegations may lead to negative perceptions and loss of liquidity in affected pools, affecting future investments and partnership interest.
Benjamin Chow, CEO, Meteora, said, "The complaint cites estimated investor losses exceeding $69 million following the launch of $M3M3..." (source)
Recurring Insider Manipulation Patterns Detected
Past instances of meme coin schemes by the same parties ended with similar accusations of insider profit-taking. Historical trends suggest possible decreased investor trust in DeFi projects linked to allegations, potentially reducing future market optimism in Solana's infrastructure.
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