Memecoin Whale in Solana Drives Retail Investors into FOMO

Blockchain analysis platform Lookonchain warned investors about BEER, the new memecoin of the Solana ecosystem.

According to Lookonchain's statement, a large whale is reducing the price of BEER by selling it in large quantities, and then raising the price again by buying it at a low price from the hands of small investors who sell in panic.

Manipulation Warning

Lookonchain stated that the big whale made profits from small investors by buying the price low and selling it high.

In the platform's post, “The big whale is selling BEER in large quantities to force retail investors into panic selling. Then, it increases the price again by buying at the bottom, allowing small investors to buy due to FOMO (fear of missing out). "When the price rises, it makes a profit by selling large quantities again."

Insider trading allegations for BEER

BEER, introduced as “liquid gold”, started to be traded on decentralized exchanges such as Raydium in recent weeks and gained 500 times in value in two and a half weeks on the Solana network. However, it lost more than 80% of its value in a short time. According to a cryptocurrency analyst, the reason for this decline was the actions of insiders.

Allegedly, BEER developers and these individuals controlled more than 50% of the total supply.

Million Dollar Sales

It was stated that 13 people associated with BEER's developer team sold $15 million worth of BEER in the last few days. Some of these people sold more than $1 million worth of tokens at once.

Crypto analyst Wazz said that with Bybit opening BEER futures, these people were able to manipulate short/long positions. BEER price began to drop rapidly along with millions of dollars in token sales.