Mysterious 'Binance Insider' Invests $8.65 Million in Solana Memecoin WIF
Date: 2024-01-12 Author: Dima Zakharov Categories: BLOCKCHAIN
Cryptocurrency Enthusiast Acquires $8.65 Million Worth of WIF
In a surprising turn of events, a self-proclaimed "Binance Insider" has made a substantial investment of $8.65 million in the memecoin WIF, which operates on the Solana blockchain. This investment comes amidst growing attention on Solana-based memecoins since late 2023, with tokens like BONK driving up sales of Saga smartphones.
The Big Spend
According to analytics platform Lookonchain, the unidentified investor, referred to as the "Binance Insider," purchased a whopping 86,738.1 SOL, equivalent to $8.65 million, acquiring 17.22 million WIF tokens. Analysts speculate that this move indicates the investor's anticipation of WIF being listed on the Binance exchange.
However, another blockchain platform, Scopescan, revealed that the same investor suffered a $7.7 million loss due to slippage. Attempting to acquire WIF for $8.65 million in a single transaction, the investor encountered liquidity issues as the available liquidity was just $2.7 million.
Meme Coin Mania Continues
This development echoes the ongoing frenzy surrounding memecoins on Solana. The Dogwifhat token was launched in late 2023, claiming to represent "progress, futuristic operations, and a beacon for those thinking about the future."
While some traders have enjoyed significant profits from memecoin investments, others have cautioned about the risks associated with trading low-cap memecoins, emphasizing their high volatility and liquidity challenges.
Solana's Memecoins in the Spotlight
Dogwifhat is not the only memecoin making waves on Solana. BONK, another memecoin, experienced several all-time highs in its price within just a few weeks. On December 15, 2023, the coin's market capitalization surpassed $1 billion, surpassing the daily trading volume of Pepe (PEPE), Dogecoin (DOGE), and Shiba Inu (SHIB).
The BONK frenzy even led to a surge in the sales of Solana smartphones. Buyers of these devices were eligible for free tokens, causing the rapid depletion of available stock in the United States. In a surprising twist, these smartphones were later resold on eBay for several times their market price, fetching up to $5,000 each.
It's worth noting that investing in memecoins carries substantial risks, and traders should exercise caution and conduct thorough research before participating in such markets.
