Why Did Aura Memecoin on Solana Surge Nearly 100 Times in Just a Few Days?

Aura (AURA), a memecoin on the Solana platform, has shocked the cryptocurrency market with a spectacular breakout, rising nearly 10,000% in just a few days. From a modest price of $0.001, the token surged to nearly $0.1, pushing its market capitalization from $1 million to almost $100 million. Trading volume also exploded, exceeding $40 million, creating a frenzy among retail investors.

The significant rise of $AURA is attributed to 215 wallets using $4 million to purchase 30% of the total supply of $AURA, driving the price up sharply.

Blockchain data from Lookonchain reveals enormous profits achieved by some investors. For instance, one wallet turned an initial investment of $24,000 into $128,000, pocketing a profit of $104,000. Another trader even claimed to have an unrealized profit of nearly $700,000.

Despite the attractive price surge of AURA, cryptocurrency experts continue to urge caution. David, a tool specializing in detecting blockchain scams, has sounded the alarm by categorizing AURA as “Level 3 – Professional Scam.” He points out several suspicious signs: the token’s utility is unclear, the distribution of the tokens lacks transparency, and the timing of the price increase is unusual.

David emphasizes that AURA was only launched in May 2024 but quickly reached a market capitalization of $70 million before collapsing and then bouncing back. Notably, wallets holding large amounts of the token did not purchase them but received them through transfers, raising suspicions of manipulation or a pump-and-dump scheme.

In this heated market environment, investors are advised to exercise caution and carefully consider participating in the AURA frenzy, as the potential risks may outweigh the tempting profits.

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