Offensive Memecoins Spread on Solana, Spark Debate

A recent surge in trading volume on Solana has also inspired an alarming increase in racist, misogynistic and other derogatory memecoins designed to offend.

Crypto markets are enjoying their bull run, in line with the boom cycles that have characterized the landscape so far. However, each cycle differentiates itself through which blockchains the charge is routed through.

In this cycle, Solana has emerged as a standout winner, largely because of its promise of lightning-fast throughput speeds and negligible transaction fees. So Solana has seen a surge in memecoin issuance and trading, with several explicitly useless tokens going “to the moon” overnight.

However, this boom has been accompanied by a disturbing trend: the rise of dozens of memecoins with overtly racist, sexist and other derogatory themes. Many are named after racist slurs, contain offensive caricatures, or refer to antisemitic conspiracy theories.

As the Solana ecosystem becomes increasingly populated, it has inadvertently become a breeding ground for such signs, raising serious concerns about the intersection of technology and social responsibility.

Decentralization and accountability

This influx of offensive tokens on Solana sparked a widespread debate in the cryptocurrency community. Hundreds of racist, misogynistic and otherwise derogatory signs have been launched in recent weeks, and while some signs walk the line between bigotry and irony, others cross it explicitly into open hate speech.

The emergence of such coins has not only drawn the ire of many, but has also provoked serious discussions about the ethical dimensions of blockchain technology and the responsibility of those who engage with it. Openly available for anyone to develop on and with very low barriers to entry, the Solana blockchain has emerged as the centerpiece for this debate to play out.

Many influential voices in the crypto world have taken to social media to express their disdain. Martin Shkreli drew attention to the “dangerous undercurrent of racism” permeating blockchain systems in a tweetand says “the entire chain system is flooded with racist memes and signs that many presumably white people are taking advantage of.”

sergeant @karaswisher @DonLemon are you aware of the dangerous undercurrent of racism currently flowing through blockchain systems of America. it’s way beyond just Pepe, the entire chain system is flooded with racist memes and signs that many presumably white people are taking advantage of

— Martin Shkreli (e/acc) (@wagieeacc) March 21, 2024

Anatoly Yakovenko, co-founder of Solana, condemned the creators of these signs more succinctly, write: “F’ these anti-Semitic racist incels.”

F’ these anti-Semitic racist incels.

— Tollie 🇺🇸| bip-420 (@aeyakovenko) March 22, 2024

Read more: Solana is tearing up. But is the economics of the SOL token sustainable?

The problem has sparked broader debate about what, if anything, any actor can do to prevent such tokens from being issued, such as whether or not they should be censored at all. Some pointed to the hate-fueled meme tokens as the ugly byproduct of a decentralized system, while others thought that they could be regulated by markets that send hate tokens to zero; others thought that the risk of doxxing might deter future perpetrators.

The Solana Foundation did not immediately respond to a request for comment for this story.

Influential X-user @punk6529 addressed the issue by stress the effectiveness of social consequences in correcting bad behavior, emphasizing the permissionless nature of blockchains and comparing the creation and trading of racist tokens to the legal act of publicly selling racist t-shirts. Yet they drew a distinction, suggesting that such actions, both online and offline, were signs of embarrassment or cowardice. The thread explored the mindset of those who might not express such bigotry in real life due to fear of consequences or a lack of genuine hatred towards others.

Others, however, took a more blunt view: that this is an inevitable consequence of fully decentralized access to the creation of financial instruments – for better or for worse. Autism Capital wrote:

“These types of bottom-level memecoins are what happens when you have an ‘open and free decentralized financial system.’ Solana has reduced the barrier to entry to almost zero, making launching these coins as easy as a few clicks… This is real ‘free speech’. The permission for kids to make racist ponzis with their friends. This is not a condemnation of Solana or open financial systems. This is what comes with the territory and is a result of inclusion. Must learn to accept it.”

This situation on Solana highlights a recurring theme in the crypto space: the tension between the ideals of decentralization and the need for ethical governance. Similar issues have surfaced on other blockchains, indicating that this is not a problem unique to Solana, but a systemic challenge within the cryptocurrency ecosystem.

The rise of offensive memecoins is forcing the community to confront the darker aspects of what it means to operate in a permissionless environment.