In the fast-paced world of crypto, projects can skyrocket to fame one day and fade into obscurity the next. A recent tweet from @FabianoSolana highlights this harsh reality with Sharky, a once-promising NFT lending protocol on Solana. The post reads: "remember sharky and their airdrop? a few years ago, sharky was making more money than Jupiter, Magic Eden, and others… they’re the perfect example of how bad tokenomics and failing to adapt to new trends can kill a project."

This sparked a wave of replies from the community, reminiscing about Sharky's heyday during the NFT boom and lamenting its current state. But what exactly happened to Sharky, and why should meme token enthusiasts on Solana pay attention? Let's break it down.

The Rise of Sharky: Solana's NFT Lending Pioneer

Sharky launched on Solana in March 2022, with its public debut in April. It revolutionized NFT finance by introducing the world's first escrow-less lending protocol for NFTs. Using an order-book model, it allowed users to borrow and lend against their NFTs instantly, unlocking liquidity in a market that was exploding at the time.

During the peak of the NFT season in 2022, Sharky was a powerhouse. As @kayydee_sol replied in the thread, "Yeah I remember them. They made so much during peak NFT szn." Indeed, the protocol reportedly generated more revenue than heavyweights like Jupiter (a DEX aggregator) and Magic Eden (a leading NFT marketplace). This was a time when Solana's ecosystem was buzzing with NFT hype, and Sharky positioned itself as the go-to for NFT-backed loans.

The $SHARK Airdrop and Token Launch

Fast forward to April 2024, when Sharky dropped its governance token, $SHARK. With a total supply capped at 100 million tokens and a max supply of the same, about 15% was set to circulate at launch. Eligibility for the airdrop was based on Sharky points earned through lending and borrowing activities, with traders getting a 4x boost during the points program that started in February 2024.

The airdrop was highly anticipated, as guides like this one on Phantom's blog show. Users had to claim their tokens via a dedicated site, and it seemed like a solid way to reward the community. However, as with many airdrops, the excitement was short-lived.

The Downfall: Bad Tokenomics and Market Shifts

Sharky's token hit an all-time high of $0.52 shortly after launch, but it plummeted dramatically. As of October 2025, $SHARK trades at around $0.00345, marking a staggering 99.3% drop from its peak. The fully diluted valuation hovers at just $345,000, with a total value locked (TVL) of about $699,000—far from its glory days.

What went wrong? As @FabianoSolana pointed out, a combination of poor tokenomics and failure to adapt. Tokenomics refers to the economic design of a token, including supply, distribution, and incentives. In Sharky's case:

• Heavy Post-Airdrop Selling: Airdrops often lead to dumps as recipients sell off free tokens, flooding the market and crashing the price.
• Limited Utility: As a governance token, $SHARK's value tied closely to the protocol's success. But with NFTs losing steam post-2022 bear market, demand for NFT loans dried up.
• No Pivot to New Trends: While competitors like Jupiter evolved with perpetual futures or other DeFi innovations, Sharky stayed focused on NFT lending. As @Rahmanni_ asked in the replies, "Crazy how fast things can change in this space. What exactly went wrong with their tokenomics?" The answer lies in inflexibility—crypto trends shift rapidly, from NFTs to memecoins to AI-driven projects.

General crypto pitfalls amplified this. Articles like this one on CryptoSlate explain how unsustainable incentives or poor distribution can doom even strong projects. Sharky's fixed supply was a start, but without ongoing utility or community engagement, it couldn't hold value.

Lessons for Meme Token Projects on Solana

At Meme Insider, we focus on meme tokens, but Sharky's story is a goldmine of lessons for any Solana-based project, especially memes which often rely on hype over fundamentals. Meme tokens like $DOGE or $PEPE on other chains have survived by adapting—think community takeovers or integrations into games and payments.

• Nail Your Tokenomics Early: Avoid massive unlocks or insider-heavy allocations that lead to dumps. Aim for fair launches and vested distributions to build trust.
• Adapt or Die: Memes thrive on trends. If your token's narrative (e.g., a shark-themed meme) ties to fading hype like NFTs, pivot! Integrate with hot sectors like DeFi, gaming, or AI.
• Community First: As @Muh__Toyeeb noted in the thread, "adapting and shipping more products or features and a good tokenomics and taking care of the community is the right way to go." Engage holders with updates, AMAs, and rewards beyond airdrops.
• Beware Airdrop Pitfalls: While airdrops boost awareness, they can backfire without mechanisms to encourage holding, like staking rewards.

Sharky's TVL still lingers around $700k, showing some residual activity, but its token's fate serves as a stark reminder. In the replies, @6uRT_sol shared, "I got 1 $SHARK and didn't claim"—a funny but sad nod to missed opportunities.

If you're building or investing in Solana meme tokens, study cases like this. Check out Sharky's official site at sharky.fi or track $SHARK on CoinGecko for real-time data. The crypto sea is full of sharks—don't become chum.

Wrapping Up

Sharky's journey from revenue king to cautionary tale underscores the volatility of blockchain projects. By learning from its missteps, meme token creators can craft more resilient ecosystems. Stay tuned to Meme Insider for more insights on Solana's wild meme world—where the next big wave could be just a tweet away.