- The memecoin market has recently experienced yet another incident of insider trading.
- The total market capitalization of memecoins soared above $70 billion this year, drawing attention towards its lucrative but risky nature.
- Highlighted by a blockchain analysis, insiders of Spike (SPIKE) memecoin were found heavily offloading their tokens.
Discover the unfolding scandal of insider trading within the memecoin market, specifically focusing on Spike (SPIKE), where insiders are capitalizing on market trends for personal gain.
Spike (SPIKE) Memecoin Insider Trading Unveiled
The blockchain analysis platform Lookonchain disclosed that individuals with inside information about the Spike (SPIKE) memecoin began a massive sell-off. This strategic sell-off was facilitated through various wallets, culminating in the substantial disposal of tokens.
Massive Token Dump Impacts Spike’s Market Value
Based on data from Solscan, several wallets were used to acquire large quantities of SPIKE tokens. Subsequently, a total of 292.95 million SPIKE tokens were sold for 7,056 Solana (about $1.06 million). With a total supply of 999.99 million SPIKE tokens, the sold amount represented approximately 29.3% of the total supply. This significant sale led to a dramatic crash in SPIKE’s price.
Price Plummets by 95% Amid Sell-off
The overwhelming sale caused SPIKE’s price to tumble by 95%, as reported by Lookonchain. The rapid liquidation of such a sizeable portion of the total supply triggered a steep decline in the token’s value.
Insight into Spike’s Origins
Spike was touted as the documented original drawing by Matt Furie, the artist behind the famous Pepe the Frog character, which inspired the PEPE memecoin. Spike’s website suggests that while PEPE has been in the limelight, it’s time for the world to recognize Spike’s originality as Furie’s first creation.
Conclusion
This incident highlights the risks associated with the memecoin market, where insider trading and strategic market manipulation can lead to significant value fluctuations. Investors are advised to exercise caution and conduct thorough research before diving into highly speculative investments such as memecoins.
