When a meme coin primarily based on a viral child hippo in Thailand notches dizzying good points, these fortunes can soften away relatively rapidly. Merely have a look at an nameless dealer on Solana who has round-tripped tens of millions of {dollars} in worth these previous few days.
It’s the sort of luck that degens dream of: After investing $800 in Moo Deng, an allotment of 30.2 million tokens had swelled to $7.5 million in worth late final month. The worth of these tokens peaked at simply over $10 million on September 28 when the worth of the Moo Deng meme coin hit an all-time excessive.
Although the dealer with a Solana pockets deal with starting in “Db3P” has damaged up their sizable stash throughout 4 Solana addresses, blockchain knowledge examined by Decrypt Monday indicated that the dealer has not parted methods with any Moo Deng tokens.
That has remained true, even because the dealer’s holdings tumble in worth.
Moo Deng’s value buckled 65% from its peak 9 days in the past, falling as little as $0.10 Monday. Nonetheless, the coin had risen 4% in worth over the previous day to $0.12.
The Solana dealer nonetheless had important earnings on paper, buying the hippo token in bulk for two-hundred-thousandths of a penny every—4 hours after it was launched.
As of this writing, the dealer’s Moo Deng tokens had been valued round $3.8 million, based on Solscan, representing a 433,367% enhance in comparison with their entry value. So why hasn’t the whale offered? In brief, they will’t—a minimum of not simply, and never with out additional tanking the token’s value.
The marketplace for Moo Deng, as with just about all meme cash, is extraordinarily illiquid. In the intervening time, there’s solely round $3.2 million in liquidity obtainable within the Moo Deng pool on the Solana decentralized alternate Raydium, the place the token trades. Have been this dealer to promote, even in small tranches, the worth of the token would start to fall precipitously, and the dealer would solely notice a small fraction of their paper good points. Trying to promote the stash in a single go would crash the worth of Moo Deng by greater than 50%, based on estimates on Solana DEX aggregator Jupiter.
Meme cash are extraordinarily unstable, rising and falling primarily based on little greater than vibes. In an interview with Farokh Sarmad of Rug Radio, Decrypt’s sister firm, the shark tank star Mark Cuban just lately stated, “Meme cash are all a recreation of musical chairs.”
As enthusiasm towards the Solana-based meme coin confirmed indicators of fading, a copycat model of the token noticed notable consideration on Ethereum.
After Ethereum co-founder Vitalik Buterin dumped Moo Deng on Ethereum to fund charitable initiatives, the coin’s value rocketed. Pushing as excessive as $0.000246, the coin’s value had fallen 23% to $0.000188. Nevertheless it was nonetheless up 325% over the previous day.
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