Solana-based CAT Memecoin Crashes After Team Accused Of Hacking And Price Manipulation

In a recent development, the creators of Solana-based (CRYPTO: SOL) CAT memecoin have been implicated in a hack of a crypto influencer’s account. The coin tumbled sharply in response to the controversy.

What Happened: In a long thread, prominent on-chain sleuth, ZachXBT, accused the team behind the newly-launched memecoin of hacking the X account of Gigantic-Cassocked-Rebirth, popularly known as GCR, on May 26.

The team allegedly manipulated its own coin launch on May 24 to gain control of over 63% of the CAT supply. They then reportedly sold over $5 million worth of the coin, with profits distributed among multiple wallets.

Part of these funds were later used for trading on decentralized exchange Hyperliquid. The hackers opened long positions on ORDI (CRYTO: ORDI) and Ether.fi (CRYPTO: ETHFI), betting on a future price increase.

Using GCR’s hacked account, they shilled ORDI, causing a brief surge in the token’s price and gaining nearly $34,000. However, a similar attempt with the ETHFI token was unsuccessful, resulting in a loss of $3,500. GCR, using another account, alerted their followers about the hack of the original account immediately.

Meanwhile, hackers continued with their dirty work, shilling ETHFI next. This time, however, they endured losses

The explosive allegations weighed in on the coin, as it bled 70% in the last 24 hours, according to CoinMarketCap.

Why It Matters: The CAT memecoin’s launch and subsequent price manipulation come in the wake of a surge in popularity for cat-themed coins. The hack and alleged price manipulation by the team raise concerns about the integrity of this market.

The incident also follows a trend of high-profile hacks in the crypto space lately. Olympian and media personality Caitlyn Jenner’s promotion of her own cryptocurrency raised suspicions of a potential hack.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Image via Shutterstock

Solana-based CAT Memecoin Crashes After Team Accused Of Hacking And Price Manipulation

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