According to CryptoPotato, major cryptocurrencies such as Bitcoin, Ethereum, and Ripple have experienced minor gains in the past 24 hours, recovering from recent losses. Meanwhile, AI-related coins like Fetch.ai have seen double-digit increases. However, not all digital assets are faring as well, with some still deep in the red.
The meme coin Beercoin (BEER) is one such example, with its price collapsing by 35% on a daily scale and 80% weekly. This significant drop coincides with the actions of several large investors, or 'whales', who have sold off their holdings en masse. Blockchain data analysts platform Lookonchain revealed that one such investor sold 8.78 billion BEER tokens, almost their entire stash, for $1 million. Another whale sold 5.43 billion assets for approximately $1.13 million.
These sell-offs can have a negative impact on the price of the token, as the increased supply can overwhelm current demand. Additionally, the actions of these whales can cause reputational damage to the asset, leading to panic within the community and prompting other investors to sell their holdings.
Earlier this month, BEER was among the top performers in the meme coin sector, with its price reaching an all-time high of approximately $0.0005 on June 10. At that time, its market capitalization reached the $500 million mark. However, it currently stands at less than $70 million.
The drastic plunge of BEER serves as a warning to traders about the potential risks involved in the meme coin market. Those considering entering the ecosystem should conduct thorough research, rely on identified sources, and only invest what they are prepared to lose.