Catwifhat (CIF), a memecoin based on the Solana blockchain, has defied the odds by surviving not one, but two rug pulls. This showcases the resilience of decentralized cryptocurrencies, which can continue to thrive even when the developers vanish.
According to an interview with Cointelegraph, NFT_Sloth, an investor in Catwifhat, revealed that the project endured two rug pulls within a span of 12 days. Despite these setbacks, the community remained dedicated and the project managed to bounce back.
The first rug pull occurred shortly after the project’s launch on December 12, 2023. Allegedly, the project’s founder dumped their tokens on the market, cashing in 20% of the token’s supply for 3.86 SOL (worth $265 at the time) and removing most of its liquidity. However, the remaining investors quickly took charge and formed a new development team to promote the token. As a result, CIF’s market cap recovered to over $4 million by December 23.
Unfortunately, the token’s largest liquidity provider executed another rug pull on December 24, removing 92% of the liquidity and causing the price to plummet by 76%. Despite this setback, the development team restructured once again and continued working on the project. As of April 3, CIF’s market cap stands at approximately $1.4 million. The 200 million tokens that the founder sold on launch day would be valued at over $250,000 today.
Catwifhat was created as a follow-up to Dogwifhat (WIF), a memecoin on the Solana blockchain that gained popularity in November 2023. The Dogwifhat meme originated on X in 2019 when a Fortnite player changed their profile picture to a Shiba Inu dog wearing a beanie hat. The meme quickly spread throughout the platform, and in November 2023, crypto developers capitalized on its popularity by creating a token associated with it.
Catwifhat’s developer allegedly executed an exit scam immediately after the project’s launch. The developer minted 1 billion tokens, sent 10% to two different accounts, and deposited the remaining 80% into a liquidity pool. Despite the lack of marketing, the token attracted some buyers due to its similarity to Dogwifhat.
The first rug pull occurred when the account holding 100 million tokens sold them into the liquidity pool. The second rug pull, allegedly orchestrated by a social media manager who had control over the majority of the liquidity pool, resulted in a significant price drop.
However, the Catwifhat community regrouped once again. A new website and Telegram group were established, and efforts to promote the token continued. Some members of the community are even working on an NFT marketplace that will utilize CIF as its native token.
As of April 2, CIF’s price is $0.001451, with a market cap of $1,451,116. Despite the rug pulls, the project has managed to recover and gain value over time. This offers hope to victims of rug pulls, although it’s important to note that many other projects have not been as fortunate. Rug pulls have resulted in substantial losses for investors, with millions of dollars stolen from victims in recent years.