X Suspends Memecoin Creation Account Amid Growing Interest

X Shuts Down Account Letting Users Make Memecoins with Posts

Elon Musk's social media platform X (formerly known as Twitter) has closed an account that lets users create new cryptocurrencies, called memecoins, just by making a post.

The account, named "makenowmeme," had 15,000 followers before it was suspended on August 2. X said the account broke its rules, but didn't give more details.

Memecoins are a type of cryptocurrency often created as a joke or based on internet trends. They've become popular in recent years, with some people making big profits from trading them.

How It Worked

The "makenowmeme" account offered a simple way for X users to make their own memecoins. Users just had to post a message with:

• A short name for their coin

• A description of what it was about

• The tag @makenowmeme

• An optional picture or video

The system would then create the new memecoin on the Solana blockchain, a platform for cryptocurrency and other digital assets.

When enough people bought the new coin, money would be put into a system called Raydium, which helps people trade these coins. This process is similar to another memecoin creator called pump.fun.

The most successful coin made through this system was called "Dogs." It was worth about $184,000 at its peak.

Big Profits for Some Traders

Some people made a lot of money trading these new memecoins. One trader earned about $800,000 in just one hour from a coin called CTO. They spent about $8,500 to buy 257 million CTO coins and then sold most of them for a huge profit.

Even some well-known people in the crypto world tried it out. Alex Svanevik, who runs a company that studies cryptocurrency data, made a coin called IQ on July 31. He said he was just testing it and told people not to invest in it.

Why It Matters

This event shows how fast and easy it's become to create new cryptocurrencies. It also highlights the risks and potential rewards in the world of memecoins.

Memecoins have been doing well recently, especially those on the Solana blockchain. They've been growing more than the overall cryptocurrency market.

Right now, memecoins make up about 2% of all the money in cryptocurrencies, which is about $48 billion.

What's Next

The people behind the "makenowmeme" account say they're trying to get it back up and running. For now, they've stopped letting people make new coins.

This situation raises questions about how social media platforms like X will deal with cryptocurrency-related activities. It also shows the growing interest in memecoins and the Solana blockchain.

However, it's important to remember that investing in memecoins can be very risky. Their value can change quickly, and many end up being worth nothing.

As the crypto world keeps changing, we'll likely see more debates about how to balance innovation with protecting users and following rules.

For now, the sudden shutdown of "makenowmeme" serves as a reminder of how quickly things can change in the world of cryptocurrencies and social media.

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