Meteora has introduced M3M3 — pronounced “meme” — a new project looking to change the way meme coins operate by presenting staking incentives for investors. However, some analysts are concerned about its operating mechanism.
The platform facilitated the launch of the M3M3 token to serve as a test run for this concept, with the token quickly gaining traction among the crypto community.
Understanding the M3M3 platform
M3M3 is Meteora’s attempt to address the challenges in the meme coin market, where the majority of tokens fail to sustain long-term value.
Data confirms the grim state of meme coins, as out of 1.2 million new tokens launched last month on pump.fun, only 1.4% migrated to decentralized exchanges, and a mere 0.05% surpassed a $1 million market capitalization. This is largely due to the high rate of rug pulls.
Earlier in the year, a crypto.news report confirmed that deployers of Solana-based meme coins facilitated rugpulls, leading to a combined loss of $26 million for investors in March. Most recently, the Hawk Tuah token collapsed 90% hours after launch amid rug pull allegations.
$HAWK didn’t disappoint
96% of the supply in one cluster
nice 🤡 https://t.co/AP645QzkfI pic.twitter.com/ERHTG7v5oa— Bubblemaps (@bubblemaps) December 4, 2024
Meteora looks to address these issues by promoting a player-versus-platform (PPP) model for meme coins. This would represent a shift from a player-versus-player (PvP) environment, where quick liquidity withdrawals often leave holders at a loss.
The new PPP model will introduce a staking approach, according to the announcement. This staking mechanism essentially encourages token holders to stake their assets, reducing selling pressure and fostering long-term stability.
𝗛𝗲𝗿𝗲’𝘀 𝗵𝗼𝘄 𝗠𝟯𝗠𝟯 𝘄𝗼𝗿𝗸𝘀:
• Stake your memecoin to earn the fee rewards in M3M3.
• The more you stake, the more you earn.
• Only the top stakers share in the fee rewards.
• If you unstake your tokens, you must wait before you can withdraw them. pic.twitter.com/uZF1aAIpac— Meteora (@MeteoraAG) December 4, 2024
How the M3M3 staking model works
The M3M3 system incentivizes staking by presenting rewards derived from locked liquidity swap fees. These fees are distributed among the top stakers in the form of Solana
sol-0.73%Solana tokens, which can be claimed immediately, and meme coin rewards that are automatically restaked.
The model potentially creates a positive feedback loop: as more participants stake, the competition increases, driving token purchases and enhancing liquidity, which in turn generates more rewards.
Unstaking comes with conditions, as participants must wait a designated period before withdrawing tokens. This mechanism discourages short-term speculation and promotes sustained participation.
A saturated market
Meanwhile, M3M3 enters a crowded market of token deployment platforms, including Pump.fun, SunPump, and Snek.fun. PancakeSwap also recently launched Springboard on BNB Chain.
Each competitor has carved out a niche by facilitating meme coin launches and liquidity generation. For instance, Pump.fun focuses on hype-driven token launches, while SunPump leverages on-chain buyback and burn mechanisms. Meanwhile, Springboard allows free token launches.
However, M3M3’s introduction of staking rewards could set it apart by addressing the issue of value retention. By comparison, M3M3 leverages a staking mechanism inspired by the “(3,3)” model to create a sustainable ecosystem.
Possible strengths and drawbacks
The M3M3 model has several advantages. First, it incentivizes token holders to stake rather than sell, reducing market volatility.
Second, it reportedly provides a steady income stream through fee rewards, even during market downturns the official website claims. Also, its configurability makes it attractive to launchpads seeking staking solutions for new projects.
However, the platform is not without challenges. Its reliance on staking to sustain demand may falter if rewards become insufficient to attract participants. The potential for high entry barriers, as only top stakers benefit significantly, could alienate smaller investors.
You might also like:62% of Solana’s DEX transactions belong to Pump.fun — What keeps it going?
M3M3 token launch
Meteora launched the M3M3 token as a test for the platform. Within hours of its release, the token has skyrocketed by over 962,000%, now boasting a $116 million market capitalization, per market data.
Its rapid success prompted a major cryptocurrency exchange, MEXC, to list the token shortly after its debut.
🚨#MEXC New Listing Alert!
📈 $M3M3/USDT Trading in the Assessment Zone: 2024-12-05 09:30 (UTC)@WEAREM3M3_ is a meme coin.
Details: https://t.co/2FIeFcAksm pic.twitter.com/5sEEJYSyzX— MEXC_Listings (@MEXC_Listings) December 5, 2024
Meteora distributed M3M3 tokens via an airdrop to active users of its platform. Despite its success, the launch sparked debate, with critics alleging insider control and expressing concerns over the lack of transparency.
Community reactions
The M3M3 launch has triggered mixed reactions, with opinions ranging from commendation to harsh criticism.
DeFi project CC2 Ventures highlighted the generosity of Meteora’s airdrop strategy, which rewarded active users with M3M3 tokens. They noted that the tokens held significant value, thanks to the token’s rapid rise to over $113 million in market capitalization.
Check your wallet if you have been using @MeteoraAG!
They airdropped M3M3 tokens to active users. 🪂
The token is currently trading at a $113.6M MC, so worth a decent chunk.
My main wallet received over 34K (!) Tokens, which I already put into DLMM.
Other wallets I checked… https://t.co/L6w3IZ0sK4 pic.twitter.com/P65pVTxixM— CC2 (@CC2Ventures) December 4, 2024
Lemon, another pundit on X, praised the staking model, comparing it to game-changing DeFi innovations of the past. Lemon noted the platform’s ability to allow token holders to earn rewards without needing to sell their assets, describing it as a new frontier for meme coins.
M3M3 is actually fucking genius.
Game-changing launch here which imo could have a similar impact to PF with its ingenuity. $M3M3 protocol is the first mover in the space to allow users to earn from their memecoins. Any token on their platform will have the ability to stake and… https://t.co/5FDhh0kBlI— lemon (@lemondontfloss) December 4, 2024
However, not everyone viewed the launch favorably. A commentator expressed disappointment that the launch did not utilize Jupiter Exchange’s established launchpad, which might have ensured greater transparency.
Don't buy @MeteoraAG Stealth Launched Coin $M3M3.
It's fully controlled by insider snipers!
I Expected better from @JupiterExchange & @MeteoraAG why JUP launchpad was not used? pic.twitter.com/Ku1AebI4ql— Davido 🔮 (@NftDavido) December 4, 2024
These critics argue that Meteora’s decision to stealth-launch the token undermined trust and gave an unfair advantage to a select few.
Meanwhile, some skeptics dismissed the project entirely, suggesting it was overhyped and risky. An observer discussed the unexpected “insider-driven” nature of the launch, cautioning investors to avoid risking their SOL tokens on what they deemed an uncertain proposition.
lol@MeteoraAG with a scam insider token launch and was not on my bingo card for today.
$m3m3
Don’t throw away your sol!
Retardio pic.twitter.com/KbH8g1GqAY— Techlinky (@Techlinky) December 4, 2024
#m3m3 #CryptoZombieUprising #AltcoinMarketWatch #SUIInTheSpotlight #MicrosoftBTCInvestmentVote
