Solana Empty Glasses: BEER Coin Fizzles 70% In Alleged Rug Pull
June 14 2024 - 6:15AM
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The Solana blockchain has revealed a sobering story, adding to the
turbulence in the bubbly world of memecoins, such as BEER. The coin
rose to prominence in recent weeks, experienced a dramatic price
swing, and raising concerns about the inherent volatility and risks
associated with these internet-driven tokens. Related Reading:
Bitcoin Ownership Trends: Short-Term Spike As ETFs Gain Popularity
– Report Whales And Rug Pulls: A Recipe For Disaster BEER’s wild
ride began with a classic memecoin scenario: a surge in popularity
fueled by online hype and community buzz. However, this exuberance
masked a lurking danger – the outsized influence of large token
holders, often nicknamed “whales.” When several whales decided to
cash out, their massive sell orders triggered a domino effect. The
price of BEER plummeted a staggering 70% in a matter of hours,
pulling the token’s price down from around $0.0003 to $0.0001.
Fears of a “rug pull” – a scenario where developers create a
memecoin, inflate its price through marketing, and then vanish with
investor funds – ran rampant. While the BEER team vehemently denied
any wrongdoing, the incident highlighted the vulnerability of
memecoins to manipulation by large holders. 🚨 LATEST: Someone sold
$10 million worth of Solana Memecoin $BEER (@beercoinmeme), causing
its price to drop by 70%. pic.twitter.com/22H5cM5wFq — SolanaFloor
(@SolanaFloor) June 13, 2024 Unlike established cryptocurrencies
with diverse ownership structures, memecoins often have a high
concentration of tokens held by a small group of individuals. This
creates an environment where a few whales can significantly impact
the price, leading to extreme volatility. BEER Weathers The Storm,
But Questions Remain Fortunately for some BEER holders, the token
price staged a partial recovery after the initial selloff. However,
the damage was done. The incident served as a stark reminder of the
inherent risks associated with memecoin trading. BEER currently
sits nearly 40% lower than its pre-crash price, currently trading
at $$0.00026, with a cloud of uncertainty hanging over the horizon.
The question of who triggered the sell-off remains unanswered, with
the BEER team pointing fingers at presale investors. BEERUSDT
trading at $0.00028 on the daily chart: TradingView.com Solana’s
Memecoin Boom: A Double-Edged Sword The BEER episode also sheds
light on the double-edged sword of Solana’s burgeoning memecoin
scene. Solana, known for its faster transaction speeds compared to
Ethereum, has become a breeding ground for memecoin developers.
Related Reading: Ethereum Longs Crushed! Who Got Burned In The $62
Million Fire Sale? The ease of launching tokens on Solana has
attracted a wave of new projects, but it has also led to a
potential oversaturation of the market. This, coupled with the lack
of inherent utility for many memecoins, creates a speculative
frenzy where price movements are driven more by hype than by actual
value. Featured image from Pixabay, chart from TradingView
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