Binance Futures has announced to launch the DOGS COIN-M Perpetual Contract on September 10. The new contract will allow traders to use up to 20x leverage. This announcement comes when a potential selloff is likely around the corner.
Source: X
DOGS, a memecoin on The Open Network (TON) blockchain, recently launched a massive airdrop of 400 billion DOGS to 53 million eligible users. Airdrop recipients often sell their tokens quickly to lock in profits, especially if they received them for free. This selling behavior led to a surge in sell orders, increasing downward pressure on the token’s price. For Instance, DOGS launched with the price around $0.0016 and suddenly went down to $0.0011.
DOGS price launched at $0.0016. Source: CoinMarketCap
Recently, the DOGS saw more than 40 billion tokens distributed to over 2.5 million users within 48 hours. As a result, 93.95% of the total DOGS supply—approximately 516.75 billion tokens—is now available for trading on platforms like Binance and KuCoin. This high volume of tokens in the market without lock-up periods could lead to a sharp selloff.
Whales Moving DOGS Tokens to Exchanges: A Warning Sign?
Recent data indicates that approximately 83.13% of the DOGS tokens are held by large holders, or “whales,” with the remaining 16.87% in the hands of smaller holders. A recent analysis of whale activity reveals a noticeable reduction in whale holdings beginning on September 2.
Whales selling off their DOGS. Source: CoinMarketCap
This decline in holdings suggests that some whales have started to move their DOGS tokens, possibly to exchanges for selling. If the price begins to drop due to whale sell offs, smaller investors might panic and start selling their holdings to cut losses. This cascading effect could amplify the selloff, driving the price down even further.
On top of all this, the upcoming launch of the DOGS COIN-M Perpetual Contract on Binance Futures could amplify market volatility. Leverage trading can attract speculators, increasing both buying and selling pressure. Following the whale suit, if the sentiment turns negative, leveraged positions could lead to forced liquidations, driving the price further down.
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