Memecoin Whale in Solana Drives Retail Investors into FOMO
Blockchain analytics platform Lookonchain has warned investors about BEER, the new memecoin of the Solana ecosystem.
According to Lookonchain’s statement, a large whale sells BEER in large quantities, driving the price down, and then panic-buying it back up from smaller investors who are selling at a lower price.
Manipulation Warning
Lookonchain noted that the big whale made a profit from small investors by buying low and selling high.
The platform shared, “The big whale sells BEER in large quantities to force retail investors to panic sell. Then, by buying at the bottom, it raises the price again and makes small investors buy with FOMO (fear of missing out). When the price goes up, it sells in large quantities again and makes a profit.”
Insider trading claims for BEER
BEER, introduced as “liquid gold,” has been traded on decentralized exchanges like Raydium in recent weeks and has gained 500 times in value on the Solana network in two and a half weeks. However, it has lost more than 80% of its value in a short period of time. According to one crypto analyst, the reason for this decline was the actions of people with insider knowledge.
Allegedly, BEER developers and these individuals controlled more than 50% of the total supply.
Million Dollar Sales
Thirteen individuals associated with BEER’s development team reportedly sold $15 million worth of BEER over the past few days, with some of these individuals selling more than $1 million worth of tokens at one time.
Crypto analyst Wazz said that with Bybit opening BEER futures, these people were able to manipulate short/long positions. The BEER price began to fall rapidly#FavoriToken with the sale of millions of dollars in tokens.#FavoriToken #solano $SOL
