BEER Rug Pull? Solana Memecoin Drops 70% After Huge Sales

  • Beer Token dropped 70% after major sales
  • Some users suspected a rug pull
  • Price rebounded shortly after the drop

The Solana memecoin craze is again in full swing, with traders in a frenzy over every new token that gains traction. However, this atmosphere reveals the inherent risks of memecoins. These include the dangers of concentrated influence among big players or “whales,” and outright rug pulls. 

Recently, traders have experienced these risks firsthand after crypto whales sold millions worth of the BEER memecoin. The transaction caused it to plunge 70%, before quickly rebounding, raising questions about who was behind the sale. 

BEER Token Drops 70% After Major Sale

On Thursday, June 13, BEER, a popular memecoin on the Solana blockchain, saw a sudden and significant price drop. Several whales sold millions worth of the token, leading to a 70% decline in its price. The token’s value fell from approximately $0.0003 to $0.0001 in a few hours.

The large volume of sales prompted questions from the holders. Some users even suggested a potential for a rug pull, which large sales often indicate. A rug pull is a process where developers dump the tokens on the market, abandoning the project and leaving token holders with massive losses.

Despite the large sale volume, the token soon rebounded after the sale, reaching its price before the sale. However, it is still 39% below in the last 24 hours, currently trading at $$0.000264

Who Sold Millions in Beercoin? 

While users raised concerns about insider selling and even rug pulls, the team denied these allegations shortly after. Saying that they did not sell the tokens, they pointed the finger presale at presale investors. According to the team, some of these investors took profits, leading to a large price drop. 

While the exact identity of the entity or entities that sold is impossible to determine, Dexcreener data shows several large transactions when the token started dropping. 

Source: Dexscreener

The transactions come from several accounts, many of which are substantial BEER holders. Notably, Beercoin distribution remains largely concentrated, with the top ten holders currently owning 36.72% of the total token supply. 

On the Flipside

  • Launching tokens on Solana became easier than ever, attracting thousands of developers who launch memecoins daily
  • A high concentration of token distribution creates significant price pressures, as large holders are more willing to sell. 

Why This Matters

The Beercoin volatility highlights the risks inherent in memecoin trading, especially those with concentrated ownership. Without inherent utility, the tokens rely heavily on their community engagement, which can suffer when large holders sell.  

Read more about the Beer token: 
$BEER, a New Solana-Based Memecoin completes Pre-Sale

Read more about Circle’s integration with Solana: 
Circle Enhances Solana with Programmable Wallets, Zero Fees

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Written by on 2024-06-13 22:30:00.

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