The Solana-based meme coin market has been volatile this week. A massive sell-off by insiders in the meme coin called SPIKE caused the price to drop by 95%. Other tokens such as LEVER and ZKsync have also seen declines, while the US political-themed Meme coin market has also lost more than 13% in the last 24 hours. These developments once again reveal the risks of meme coin investments and the importance of doing detailed research.
Solana-based meme coin experienced a decline in price
While investor interest in Solana (SOL)-based meme coins continues, a massive sell-off in one meme coin caused the price to crash. According to Lookonchain’s post, investors who had insider information about the meme coin called SPIKE started selling tokens like crazy shortly after the token was launched.
Insiders received large amounts of SPIKE through multiple wallets. But he soon sold 292.95 million SPIKEs, equivalent to 29.3% of the total supply, for SOL 7,056 ($1.06 million). These sales caused the SPIKE price to drop by 95% in a short time. At the time of writing, SPIKE continues to trade at $ 0.00887, with a decrease of 78.8% in the last 24 hours. The incident drew great reaction on platforms such as Twitter. Many users argued that precautions should be taken against such manipulation by insiders.
There is also a decrease in other meme coins
The decline in SPIKE also affected other Solana-based meme coins. Coins such as SAMO and SOLAPE also lost significant value. The US political-themed Meme coin market has taken a big hit, with its market cap falling more than 13% in the last 24 hours, TheBlock reported on June 12. FreeTrump token (TRUMP) led the decline, falling 45%. MAGA (TRUMP), which has the largest market value, fell 13%. The Meme coin market has been quite volatile lately. Investors should consider the risks of such tokens and conduct detailed research before investing.
Experts emphasize that memecoin investments are quite risky and detailed research should be done before investing. In such investments, it is necessary to be careful against manipulations of people with inside information.
LEVER and ZKsync also saw declines
However, there were also declines in some tokens other than Solana-based meme coins. On June 12, LEVER fell below $0.0025 and is currently trading at $0.002473, according to market data. This represents a 24-hour decline. Additionally, the over-the-counter price of ZKsync (ZK) token temporarily dropped to around $0.35 on June 12, representing a drop of more than 40% in 24 hours.
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