Moo Deng (MOODENG), the emerging meme coin based on the Thai dwarf hippo star of the same name, has started a rapid downward journey. However, investors holding large amounts of the token are still hoping for a recovery and further boom.

After peaking at a market capitalization of $322.7 million on September 28, Moodeng has dropped 50% to $0.1935 in just three days, recording a 21.1% drop in the past 24 hours alone.

MOODENG 7-day price chart | Source: Coingecko

An early investor, known by the wallet address “Trader Db3P,” purchased $800 worth of Moodeng on September 10, the day the coin launched.

In just over two weeks, his investment has skyrocketed to $10 million. Despite the recent drop in token prices, the trader appears to have stuck with it (diamond hands), even as his holdings have fallen by about $1 million a day. His holdings are now worth $5 million, half of their peak.

Liquidity issues in the memecoin market

Why not sell while you still can?

The coin's rapid rise and subsequent fall is a prime example of a fundamental problem in the memecoin space: LIQUIDITY.

With a relatively small market cap, currently at $190 million, large token holders face a major challenge: All eyes are on Trader Db3P's wallet.

When he tries to sell, this action can lead to a deeper price drop, making it nearly impossible to exit the market without causing chaos.

Long queues in Thailand to see internet phenomenon Moo deng

Liquidity issues often increase volatility. Meme coins are particularly susceptible to large price swings due to their small market size and speculative nature.

For Moodeng, where large investors control the majority of supply, just one large sale could have a big impact on prices.

Therefore, the “Whales” in this market are choosing to wait, keeping their positions while monitoring the market or selling in small portions over a long period of time.

Moodeng's Rapid Rise

Moodeng’s boom began on September 19 when a baby hippo at Thailand’s Khao Kheow Zoo became an internet sensation. With millions of views, the Solana-based token launched on Pump.fun two weeks earlier suddenly attracted the attention of the community.

By September 24, Moodeng's market capitalization had reached $70 million, surpassing other meme coins on the platform. Its Twitter following had also grown to 39,000, far exceeding the actual number of investors.

Despite this, the token’s value continued to rise, rising 34% in a single day on September 26. This 597% weekly gain propelled Moodeng to the top of the Pump.fun rankings, with a market capitalization that rose to $265 million.

All for a coin that has no practical use.

Moodeng isn’t the only coin in this craze. Like Dogwifhat (WIF) and Pepe a few months ago, along with Shiba Inu a few years ago, the small coin has been followed by the rise of other tokens, from original meme coins like Dogecoin to Iggy Azalea’s MOTHER token and the Trump-inspired MAGA.

September 27 saw another 50% surge for Moo Deng, with the token hitting an all-time high of $0.41. That was when the mysterious trader’s $800 investment was theoretically worth $10 million, and when the token began its slide to its current price.

Be wary of insider trading allegations

Amid the meme coin craze, some voices have expressed concern. A whale holding Moodeng has faced insider trading charges. Critics point to the token’s dramatic rise and question the timing of the initial investment.

Is this really a case of insider trading? That’s still unclear. Many of the success stories in this space (at least the legitimate ones) tend to come from meme coin hunters—people who wait and buy every new worthless token that appears, every airdrop. Sometimes they get lucky.

For example, one trader turned $7,000 worth of Moodeng into $1 million after selling it within two weeks of his initial purchase. According to blockchain data, the trader now has 250 tokens left.

This type of decentralized lottery may appeal to those willing to gamble on the success of the next meme coin. But for more cautious investors, it might be better to invest in a trip to Thailand to see a real baby hippo.

Source: https://tapchibitcoin.io/vi-sao-trieu-phu-memecoin-moo-deng-khong-chot-loi-10-trieu-usd.html