Catwifhat (CIF), a memecoin built on the Solana blockchain, has defied the odds by surviving not one, but two rug pulls. This showcases the resilience of decentralized projects in the crypto space, even when faced with disappearing developers.
In an interview with Cointelegraph, an investor known as NFT_Sloth revealed that Catwifhat weathered two rug pulls within a span of 12 days, yet managed to maintain a dedicated community of supporters.
The first rug pull occurred shortly after the project’s launch on December 12, 2023. The project’s founder allegedly dumped 20% of CIF’s supply into the open market, cashing in 3.86 SOL (worth approximately $265 at the time) and removing most of the liquidity. Despite this setback, the remaining investors 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, just 11 days after the rug pull.
However, the token faced another setback when its largest liquidity provider executed a second rug pull on December 24. This resulted in the removal of 92% of the liquidity and a significant drop in price by approximately 76%. Despite these losses, the development team restructured once again and continued working on the project. As of April 3, CIF’s market cap stands at around $1.4 million. The 200 million tokens that the founder sold on launch day would be worth over $250,000 today if they had been held.
Catwifhat was created to emulate the success of another Solana memecoin called Dogwifhat (WIF), which gained popularity in November 2023. The Dogwifhat meme originated on the X platform in 2019 when a Fortnite player changed their profile picture to a Shiba Inu dog wearing a beanie hat. This meme spread rapidly on X, prompting a team of crypto developers to create a token associated with it.
According to NFT_Sloth, members of the Dogwifhat community sent edited images to memecoin influencers on X, who then promoted the token through their profiles. One influencer, “Joji,” played a significant role in promoting Dogwifhat and eventually joined the Catwifhat team to promote the new token.
However, Catwifhat faced a major setback when its developer executed an exit scam shortly after the token’s launch. The developer minted 1 billion CIF tokens, sent a portion to specific accounts, and deposited the rest into a liquidity pool on the Raydium decentralized exchange. The token had no marketing on its launch day, but it still attracted buyers due to its resemblance to Dogwifhat.
Shortly after launch, the developer sold all their tokens in the liquidity pool, causing the token’s value to plummet. Despite this, a group of investors decided to take over the project and formed a new team to promote Catwifhat. They managed to recover and attract more investors, with one investor even buying over 55 million tokens for the liquidity pool.
Unfortunately, the second rug pull occurred when the social media manager, who had control over a significant portion of the liquidity pool, revoked their access and removed their liquidity. This led to a sharp decline in CIF’s price. The development team regrouped once again, with NFT_Sloth building a new website and another investor launching a new Telegram group.
The CIF community remains active and is currently working on an NFT marketplace that will utilize CIF as its native token. While utility is important, NFT_Sloth believes that memecoins like Catwifhat are primarily driven by the fun and entertainment they provide. The ultimate goal for Catwifhat is to gain mainstream adoption, similar to Dogecoin.
As of April 2, CIF is priced at $0.001451 with a market cap of $1,451,116. Despite the rug pulls, the project has shown resilience and the ability to recover from losses. However, rug pulls remain a significant issue in the crypto industry, with millions of dollars being drained from victims. Catwifhat serves as a beacon of hope for investors, but caution is still advised when investing in decentralized projects.