TL;DR
- Major cryptocurrencies like Bitcoin, Ethereum, and Ripple saw minor gains, while AI-related coins like Fetch.ai experienced double-digit pumps.
- On the other hand, the price of one meme coin collapsed by 35% daily and 80% weekly following massive sell-offs by large investors.
The Freefall
The cryptocurrency market has flashed green in the past 24 hours, recovering much of the losses registered in the past few days. Leading digital assets such as Bitcoin (BTC) , Ethereum (ETH), and Ripple (XRP) saw some minor gains, while Fetch.ai and other AI-related coins pumped by double digits.
However, others are still deep in the red, experiencing severe plunges. One example is the meme coin Beercoin (BEER), whose price collapsed by 35% on a daily scale and 80% weekly.
The downtrend coincided with the actions of several whales who dumped their holdings en masse. The blockchain data analysts platform – Lookonchain – revealed the case of one such large investor who sold 8.78 billion BEER tokens (almost his entire BEER stash) for $1 million. Prior to that, another whale parted with 5.43 billion assets for approximately $1.13 million.
Such sell-offs can negatively impact the price of the token since the increased supply can overwhelm the current demand. In addition, the whales’ actions can cause a reputational damage to the involved asset, causing panic across the community and prompting other investors to dump their holdings.
Interestingly, BEER was among the best performers in the meme coin sector earlier this month. Its price surged to an all-time high of approximately $0.0005 on June 10. By the same time, its market capitalization touched the $500 million mark, whereas currently, it stands at less than $70 million.
Remember the Risks Involved
BEER’s massive plunge should serve as another warning to traders that hopping on the meme coin bandwagon can lead to devastating losses.
Those who are about to enter the ecosystem should conduct proper research, rely on identified sources, and invest only as much as they are ready to lose. If you want to learn more vital tips, please take a look at our dedicated video below:
