Whale has lost $5.8 million on a memecoin, but isn’t selling yet

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As a researcher with a background in financial markets and memecoins, I find it fascinating to observe the behavior of whales in this highly volatile and speculative space. The recent events surrounding Beercoin (BEER) have caught my attention, especially the actions of a whale who invested a significant sum of $7.68 million in the token.

A wealthy whale has suffered significant losses after investing around $7.68 million in a newly minted memecoin, now facing a steep decline in value with its price dropping by approximately 76%.

Despite being in a loss of $5.87 million, the whale has chosen not to sell off their holdings at this time.

Wait, I’ll hold onto my BEER

As a researcher, I’ve come across some intriguing data from Lookonchain. On Friday, they reported that an entity, identified as a whale, purchased an astounding 35.7 billion tokens of Beercoin (BEER). It is essential to note that BEER is a newly-launched meme coin themed around alcohol and operates on the Solana blockchain. The coin saw its official launch earlier this month following a highly successful presale in May.

Between May 25 and June 18, this whale bought $7.68 million worth of the BEER token.

As a crypto investor holding BEER coins, I’ve witnessed a significant drop in price causing my holdings to diminish to approximately $1.81 million. Surprisingly, despite the sharp decline, I’ve chosen not to sell any of my BEER tokens yet.

Will the whale reap big? An analyst says BEER will bounce.

This Beercoin holder dumped $1.08 million

Following the introduction of the meme coin, the BEER token experienced a significant surge in value, peaking at an unprecedented price of $0.0005704 on June 10th. Nevertheless, the recent downturn in the memecoin market has resulted in a shrinking sector market cap, now sitting below $50 billion once more. Consequently, the BEER token’s value has plummeted to $0.000047.

Based on information from CoinGecko, Beercoin has experienced a significant drop of approximately 83% over the past week. This decline occurred during this week when another large investor, referred to as a “whale,” sold off a large quantity of the cryptocurrency, leading to a further price decrease.

On June 15, Lookonchain pointed out that a large BEER token holder, identified as a whale, transferred 8.89 billion BEER tokens to their account. Out of this massive amount, they sold off 5 billion BEER tokens, which were equivalent to 7,450 Solana (SOL) tokens. The value of these SOL tokens amounted to approximately $1.08 million.

As a researcher studying the distribution of Beercoin, I came across an intriguing finding. Initially, one whale owned approximately 1% of the entire Beercoin supply. Yet, astonishingly, this same whale continues to possess a staggering amount – 3.76 billion BEER.

Meme coins cool rally

As a crypto investor, I’ve noticed an overwhelming surge in optimism towards meme coins toward the end of 2023 and continuing into early 2024.

Meme coins on the Solana network made a big entrance, introducing characters such as Dogwifhat (WIF), Bonk (BONK), and Book of Meme (BOME). On the other hand, Brett (BRETT), Degen (DEGEN), and Basenji (BENJI) hold significant influence in the base meme coin sector.

This year, political themes have gained significant popularity, with some noteworthy examples being the viral projects ConstitutionDAO (referred to as PEOPLE), MAGA (associated with Trump), Jeo Boden (Boden), and Doland Tremp (Trempe).

Expectations are high among analysts that next week’s US presidential debates will revive enthusiasm for PolitiFi tokens. Meanwhile, the ongoing market recovery may benefit the entire crypto sector. Nevertheless, the recent market downturn could cause further losses for many tokens, pushing them closer to the red zone.

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2024-06-21 21:06