Whale has lost $5.8 million on a memecoin, but isn’t selling yet

A whale who spent approximately $7.68 million on a recently launched memecoin is down 76% on the investment as the token’s price plummets.

However, the whale hasn’t sold any of their holdings despite being $5.87 million in the red as of writing.

Wait, I’ll hold onto my BEER

Per data Lookonchain shared on Friday, a whale acquired 35.7 billion tokens of Beercoin (BEER), a recently-launched alcohol-themed meme coin. Solana-based BEER launched early this month after a viral presale in May.

Between May 25 and June 18, this whale bought $7.68 million worth of the BEER token.

With Beercoin’s price plummeting sharply, the whale’s holdings have shrunk to $1.81 million. But what’s notable is that this BEER coin enthusiast hasn’t sold any of their tokens.

Will the whale reap big? An analyst says BEER will bounce.

This Beercoin holder dumped $1.08 million

After the meme coin’s launch, BEER price skyrocketed to an all-time high of $0.0005704 on June 10. However, the latest dump in the memecoin market, which has the sector market cap shrink to below $50 billion again, has since pushed the BEER price to lows $0.000047.

According to CoinGecko, Beercoin is down 83% in the past week, declines coming amid this week’s massive dump by another whale.

On June 15 Lookonchain highlighted that a $BEER whale who received 8.89 billion BEER tokens dumped 5 billion of that for 7,450 Solana (SOL) worth $1.08 million.

The whale, whose initial holdings represented 1% of the Beercoin total supply, still holds 3.76 billion BEER.

Meme coins cool rally

The meme coin market witnessed a massive spike in bullish sentiment in late 2023 and throughout the first few months of 2024.

Solana meme coins burst onto the scene with the likes of Dogwifhat (WIF), Bonk (BONK) and BOOK OF MEME (BOME), while Brett (BRETT), Degen (DEGEN) and Basenji (BENJI) dominate Base meme coins.

Political-themed tokens have also been big this year, viral ones being ConstitutionDAO (PEOPLE), MAGA (TRUMP), Jeo Boden (BODEN) and Doland Tremp (TREMP).

Analysts expect next week’s US presidential candidates’ national debate to reignite interest in PolitiFi tokens, while the broader market recovery could help the rest of the sector. However, the current dump might push most tokens deeper into red territory.