- In recent weeks, the BEER token from the Solana ecosystem has captured attention due to a significant price drop.
- A recent analysis by Lookonchain sheds new light on BEER token sales and investors’ profits.
- A prominent investor reportedly made substantial gains from early investments in BEER.
Breaking down the recent movements and profitability of the Solana-based BEER token.
Substantial Profits from Pre-Sale Participation
An investor who participated in the pre-sale of the BEER token reportedly achieved substantial profits. By investing 301.2 SOL, equivalent to approximately $50,000, they received 3.38 billion BEER tokens.
Significant Gains from Subsequent Transactions
On May 26, the investor exchanged 1.86 billion BEER tokens for 5.45 billion BONK tokens, amounting to roughly $192,000. Later, they deposited 240 million BEER tokens to Gate.io, netting them $120,000.
Market Movements and BEER Token Sales
Following its listing on Gate.io, the same investor managed to sell a significant portion of their BEER tokens, totaling $1.34 million. Despite the large sell-off, they still hold 400 million BEER tokens, valued at approximately $109,000.
Factors Contributing to BEER Token’s Price Decline
While BEER initially surged in value by approximately 500 times within two and a half weeks of trading on decentralized exchanges like Raydium, it experienced over an 80% drop recently. Analysts attribute this decline to large-scale sales by insiders, who are believed to control over 50% of the total token supply.
Conclusion
Investor activity and insider trading seem to have played a significant role in the recent volatility of the BEER token. As the market digests these large trades and the token’s future remains uncertain, it stands as a compelling case of the unpredictable nature of crypto investments.
