On-chain analysts have discovered that a whale who calls themselves a “Binance insider” is heavily accumulating a Solana (SOL) meme coin – Dogwifhat (WIF). Will Binance list WIF?
Since late 2023, the Solana meme coins such as BONK and Dogwifhat gained the spotlight. Moreover, BONK was even responsible for skyrocketing the sales of the Solana Saga smartphone.
Whale Spends $8.65 Million to Purchase WIF
Lookonchain says a whale wallet spent 86,738.1 SOL, worth $8.65 million, to buy 17.22 million WIF tokens.
“The whale calls himself a “binance insider” and seems to want to tell everyone that $WIF will be listed on #Binance,” said Lookonchain.”
Notably, when BONK was listed on Binance, its price surged by over 134% in 24 hours. The price surge added $1 billion to its market capitalization.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
However, another on-chain analytical platform – Scopescan, further elaborated that the same whale lost $7.7 million due to slippage. The whale tried to buy WIF worth $8.65 million in one transaction, whereas the liquidity of WIF was approximately only around $2.7 million.
There have been various stories on how whales made a fortune trading meme coins. For instance, on December 18, BeInCrypto reported that a trader made $1.47 million in five days trading WIF.
Read more: What Is a Rug Pull? A Guide to the Web3 Scam
But today’s story is a perfect example of the risk of trading meme coins. The low market capitalization meme coins are subject to extreme volatility and liquidity issues. Some meme coins also possess the chance of developers conducting an exit scam.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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