Sudden Market Decline for Solana-Based Memecoin
The cryptocurrency market has witnessed another significant and sudden decline, this time affecting "WhiteWhale (WHITEWHALE)," a memecoin built on the Solana (SOL) blockchain. The memecoin experienced a substantial and rapid decrease in its market value.
Whale Investor Sells $1.3 Million, Triggering Price Crash
This sharp decline was primarily triggered by whale investors selling approximately $1.3 million worth of WhiteWhale shares. Following this massive sell-off, the market value of the memecoin plummeted from an estimated $50 million to nearly $20 million within a short span of about 5 minutes. This represents a drastic price reduction of approximately 60%.
As a result of this significant sell-off by one of its largest investors, WhiteWhale lost 60% of its value. Although the altcoin has shown some signs of recovery, it still registers a 37% loss in the last 24 hours.
Speculation and Official Statement from WhiteWhale
Following the abrupt and severe drop in WhiteWhale's price, users on the X platform (formerly Twitter) began to speculate that the token might be a scam. In response to the incident, WhiteWhale officials released an official statement on their X account. They characterized the sell-off as a "liquidity event" rather than an operation directly involving the project's treasury.
The statement clarified that the project itself did not participate in the recent sell-off. However, it was noted that the WhiteWhale team did conduct some buybacks during the period of the downturn.
Industry Warning on Memecoin Volatility
In the wake of the WHITEWHALE price drop, BlockBeats issued a warning to users regarding the inherent risks of memecoin trading. They highlighted that memecoin trading is characterized by extreme volatility, often heavily influenced by market sentiment and hype. Furthermore, these tokens frequently lack real value or intrinsic utility, and investors are strongly advised to exercise caution.