Donation model chaos frequently occurs, "I, Qin Shi Huang, donate money" gameplay collapses within a week?
The wealth effect has weakened, the risk-reward ratio has significantly decreased, and the donation gameplay has entered the "willing to gamble and accept the loss" stage.Written by: Nan Zhi, Odaily Planet Daily
With BOME initiating the trend of "money throwing" mode, a batch of cryptocurrency projects with high wealth effects emerged in the early stages, and the fundraising amounts continued to rise. However, due to the overheated sentiment, the market's requirements for fundraising initiators have continuously lowered, leading to frequent chaos. A group of Degen enthusiasts, eager to chase the "new model," have gone from flaunting profits to tears of laughter, and then to angrily cursing the project parties for being untrustworthy, experiencing a roller coaster of emotions.
Yesterday, Solana co-founder Anatoly Yakovenko retweeted ZachXBT's statistical chart about presale projects on the Solana chain (27 Solana presale projects raised over 655,000 SOL in total) and called for a stop to sending money to presale projects.
Odaily Planet Daily published an article yesterday titled "Fundraising Meme Projects Explode, How to Find the Next Alpha?" introducing the characteristics of explosive projects, relevant data information query tools, and warning about participation risks. Today, we will focus on risk points—reviewing those donation projects that have already run away and discussing how long the wealth effect of this model can continue.
Disappearing with Funds
The Avalanche fundraising project Sener raised about 93,000 AVAX, worth approximately 4.8 million USD, but at the opening last night, the founder only added 20,000 AVAX to the LP pool and then transferred all the remaining AVAX. The project token SENDER only saw a slight increase at launch, and the project party did not use the remaining funds for buybacks or other support operations. Currently, the token has entered a full sell-off phase.
Founder @4msener and the project-specific account @Sender_MEME have not published any relevant content since the token went live.
Selling "Value Coins" for You
Whales Market founder @dexter_cap (hereinafter referred to as dexter) has a project token WHALES with a circulating market value of 38.6 million USD and an FDV of 185 million USD. Due to the successful project background, it was originally one of the most reliable project parties among donation initiators, but a series of suspicious operations yesterday began to raise concerns about the project's prospects.
Yesterday evening at 5 PM, dexter's fundraising address showed unusual activity, transferring 159,802 SOL to a Binance receiving address, worth nearly 30 million USD, causing market concerns about a potential exit.
Shortly after, the address transferred back 15,979 SOL from Binance, accounting for 10% of the SOL previously deposited to Binance.
One hour after the above token transfer operations, dexter posted on the X platform stating that the excess funds would soon be distributed, and that he would transfer the remaining funds to Binance to exchange for stablecoins to avoid significant depreciation of SOL. At the time of the transfer to Binance, the price of SOL was around 178 USDT, close to the day's lowest point. Some users believe this was an active selling behavior that caused the decline in SOL prices, while more users think that SOL has greater upward potential, and this move diluted the overall value of the project. Following this, there were voices like: "I can't do swing trading myself?" "If you want to sell for stablecoins, why not raise stablecoins?"…
Reciting Poetry, Painting Cakes, Then Running Away
Compared to the routine of "I, Qin Shi Huang, throw money," @MerlinOrbitX's fundraising method seems a bit novel. The project party has repeatedly posted to build an image of "working hard on development but not getting attention," but the donation model of MerlinChain lacked heat, ultimately raising only several hundred thousand dollars.
In terms of token shares, the previous typical donation routine imitating BOME was—50% of tokens and raised funds forming the LP, and 50% of tokens airdropped to donating users. However, some subsequent projects have seen a reduction in the proportion of fundraising funds added to the LP or airdrop shares, generally reduced to 20%-30%. OrbitX "creatively" reduced the airdrop share to 2.5% and informed users that they could profit after a hundredfold increase.
Only two hours after the opening last night, the OrbitX project party address withdrew all funds from the LP pool, and the token has now gone to zero, with the X platform account also canceled.
Conclusion
The donation model continues to spread across multiple chains, with the proportion of project parties taking funds and running away gradually increasing. Although a small number of projects (such as Milady Wif Hat) choose to refund all 90,000 SOL and issue tokens, overall, the wealth effect is weakening, and the risk-reward ratio is gradually decreasing. It is recommended that investors remain vigilant in related models.
