Insider Causes 96% SHARPEI Price Collapse
Date: 2024-10-25 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Lookonchain's analytics team has found that an anonymous investor sold off a large volume of SHARPEI (SHAR) tokens, dramatically reducing their value. The trader spent 5,710 Solana (SOL) to purchase 665.6 million SHAR, which is 66.56% of the total supply, distributing the assets across more than 100 wallets.
A short time later, the trader sold 500 million SHAR in a single transaction, exchanging them for 19,620 SOL and earning 13,910 SOL ($2.4 million) on this deal. After this, the SHAR price plummeted from $0.042 to $0.0027, depriving investors of any hope of a quick profit.
The actions of the insider particularly affected one of the major SHAR holders, who purchased 27 million tokens for 2952 SOL, but when the price fell, he was able to sell them only for 471 SOL, incurring a loss of 2481 SOL, which is equivalent to $429,000.
Experts note that the value of SHARPEI continues to decline, and the project's capitalization has dropped to $3 million. What happened again emphasized the high risks associated with memecoins: due to manipulation, such assets can only bring profit to selected participants, often insiders or creators.
