- Solana-based meme coin market experienced significant turbulence this week.
- Massive sell-offs by insiders in the SPIKE meme coin caused its price to plummet by 95%.
- Other tokens like LEVER and ZKsync also recorded declines, highlighting the volatile nature of meme coins.
This article delves into the recent fluctuations in the Solana base of meme coins, the astounding insider sell-off of SPIKE, and its ripple effects on related tokens.
Solana-Based Meme Coin SPIKE Faces Severe Price Drop
The meme coin segment on the Solana blockchain has been notably active. However, one token, SPIKE, faced a drastic decline due to significant insider selling. According to Lookonchain, those with inside information unloaded SPIKE tokens shortly after their release, leading to an unprecedented price drop.
Insiders reportedly procured vast quantities of $SPIKE using multiple wallets, only to sell 292.95 million $SPIKE (29.3% of the total supply) for 7,056 $SOL ($1.06 million) within a short period. This massive offloading caused the price to drop by 95%!
– Lookonchain (@lookonchain) June 12, 2024
Insiders who held significant amounts began selling shortly after the token’s launch. These sales represented nearly a third of the total supply, resulting in a sharp 95% price drop. At the time of writing, SPIKE experienced a 78.8% decline in the last 24 hours, trading at $0.00887. This incident sparked considerable reactions on social media platforms like Twitter, with users calling for measures against such insider manipulations.
Broader Impacts on Solana-Based Meme Coins
The decline in SPIKE’s value isn’t an isolated incident; other Solana-based meme coins like SAMO and SOLAPE also saw considerable drops. Reports from TheBlock on June 12th highlighted that the U.S. political-themed meme coin market had taken a significant hit, losing over 13% of its market cap in just 24 hours. Leading this downturn was FreeTrump token (TRUMP), which plummeted by 45%, while MAGA (TRUMP), the coin with the largest market cap in this segment, fell by 13%. These events accentuate the high volatility and associated risks of investing in meme coins, prompting financial experts to urge thorough research and caution.
Noteworthy Declines in LEVER and ZKsync
Beyond Solana-based tokens, other meme coins experienced declines as well. On June 12th, market data indicated that LEVER’s value dropped below $0.0025, currently trading at $0.002473, marking a notable dip in 24 hours. Moreover, ZKsync (ZK) token’s over-the-counter price temporarily fell to around $0.35 on the same day, representing a 40% decline over 24 hours.
Conclusion
The recent upheavals in the meme coin market, particularly among Solana-based tokens like SPIKE, highlight the speculative and volatile nature of these investments. Insider activities leading to massive sell-offs have shown the potential for significant value erosions. Investors should approach meme coin investments with caution, ensuring diligent research and preparedness for high risk.
