The meme coin Sharpei (SHAR), built on the Solana blockchain and promoted by crypto influencers, reached a market value of $54 million in under an hour. However, within seconds, its value dropped by 96% when multiple wallets sold $3 million worth of tokens at once.

Sharpei Reached Over $50 Million Market Cap Due to a Marketing Campaign

The Sharpei (SHAR) meme coin launched on Wednesday, featuring cartoon images of a Shar Pei dog and receiving promotional support from influencers on Crypto Twitter. This marketing push quickly brought the coin to a $54 million market cap.

When this peak was reached, leaked project documents claimed that over 50 key influencers were engaged and that partnerships with exchanges and other projects were in the pipeline. However, several of these influencers denied any involvement.

Suspicious Marketing Partnerships

The document suggested that SHAR would partner with major meme coins, such as #BONK🔥🔥 , once it reached a $100 million market cap. However, BONK's creators denied these claims. Pseudonymous influencer Joji, who was also named in the document, denied involvement, sharing screenshots disproving the partnership.

Another influencer, Yelotree, with over 180,000 followers, confirmed he had been paid to promote the project three months ago, although he had not disclosed this in his post. He mentioned that other major influencers who promoted the project deleted their posts after the price collapse.

Dramatic Drop in Token Value

SHAR's value dropped from $54 million to $35.5 million before plunging 96.3% to just $1.3 million in a mere two seconds after a coordinated mass sale. A pseudonymous trader on Twitter called it "one of the craziest rug pulls I've ever seen."

Blockchain data shows that 60% of the token's total supply was purchased at launch and distributed across more than 100 addresses. Each address then transferred tokens to a central wallet, which sold everything for $3.4 million. Blockchain analysis firm Bubblemaps confirmed this as a clear case of a rug pull.

Sharpei Creators' Response

Sharpei's official Twitter account stated that due to widespread fear, uncertainty, and doubt (FUD), the project no longer had the funds to continue. The creators promised to provide evidence of communication with each named influencer, although some deals were incomplete. This has yet to happen.

The Influence of Crypto Influencers on Projects

Influencers are often offered a percentage of the total token supply in exchange for promotion. For example, pseudonymous KOL Wizard Of SoHo requested 0.75% of SHAR's total supply for promotion, which the team declined.

According to Nick Vaiman, co-founder of Bubblemaps, influencers are an essential part of crypto marketing. However, he notes that problems arise when influencers fail to disclose their involvement or the number of tokens they received or purchased.

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