(18 June 2024, 21:33 PM IST):
In the cryptocurrencies/ market, today has been particularly harsh for some memecoin investors. The entire crypto market is experiencing bearish trends, largely driven by sharp declines in Bitcoin (BTC) and Ethereum (ETH). However, the spotlight is on the dramatic price drops of two memecoins: Beercoin ($BEER) and Trump ($MAGA). Let’s dive into the reasons behind these significant declines.
1.Beercoin ($BEER) Takes a 50% Hit:
Beercoin ($BEER) has seen its price plummet by 50%, and the primary cause is significant manipulative activity of BEER team on decentralized exchanges (DEX). According to on-chain analytics firm Lookonchain, a wallet address associated with the Beercoin team, known as “8vy4lf,” recently sold a massive 8.7 billion BEER tokens, amounting to $1 million. This large-scale sell-off over the past two days has flooded the market with tokens, driving the price down sharply.
Another wallet related to the #beercoin team is selling $BEER and the price of $BEER has dropped more than 60% today!
— Lookonchain (@lookonchain) June 18, 2024
This wallet received 8.88B $BEER from the #beercoin team wallet "8VY4LF…fDd5G2", and sold 8.7B $BEER for $1M in the past 2 days.https://t.co/E105MTcVSM pic.twitter.com/zI9BpycMyH
2.Trump ($MAGA) Falls by 40%:
The Trump ($MAGA) memecoin, which is linked to former U.S. President Donald Trump, has experienced a 40% drop. This decline follows rumors about the launch of an “official” Trump token on the Solana blockchain. According to Pirate Wires, Trump is allegedly planning to release a token named TrumpCoin with the ticker DJT. The rumor mill also suggests that Trump’s 18-year-old son, Barron, is leading this initiative.
While these rumors have not been confirmed, the mere possibility of an official Trump token has caused significant uncertainty and panic among $MAGA investors, leading to the steep price drop.
Conclusion
Today’s memecoin drama underscores the high-risk nature of these assets. The significant price drops of Beercoin ($BEER) and Trump ($MAGA) highlight how quickly market conditions and investor sentiment can change, especially when faced with large-scale sell-offs and unverified rumors. As always, investors should approach memecoins with caution, keeping in mind the potential for both rapid gains and losses.