Solana Empty Glasses: BEER Coin Fizzles 70% In Alleged Rug Pull

Christian Encila

1 year ago

3 mins read

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Currently trading at $$0.00026 and with a cloud of uncertainty hovering over the horizon, BEER is almost 40% below its pre-crash price. With the BEER crew throwing fingers at presale investors, the mystery of who started the sell-off still unresolved.
The depressing tale the Solana blockchain has exposed adds to the instability in the effervescent world of memecoins, like BEER. Rising questions over the inherent volatility and risks connected with these online-driven tokens, the currency gained popularity in recent weeks and underwent a significant price swings.

Whales And Rug Pulls: A Recipe For Disaster

The rollercoaster trip of BEER started with a classic memecoin scenario: a rise in popularity driven by internet enthusiasm and community buzz. But this euphoria concealed a hidden risk: the disproportionate impact of big token holders, sometimes known as “whales.”

Once numerous whales chose to cash out, their large sell orders set off a chain reaction. Within a few hours, the price of BEER dropped an amazing seventy-percent, dragging the value of the token from about $0.0003 to $0.0001 down.

Run rampant were worries of a “rug pull,” in which developers create a memecoin, raise its price through marketing, and then disappear with investor money. The event exposed the vulnerability of memecoins to manipulation by big holders, even while the BEER team fiercely denied any misbehaviour.

🚨 LATEST: Someone sold $10 million worth of Solana Memecoin $BEER (@beercoinmeme), causing its price to drop by 70%. pic.twitter.com/22H5cM5wFq

— SolanaFloor (@SolanaFloor) June 13, 2024

Unlike more established cryptocurrencies with different ownership structures, memecoins often include a high token concentration controlled by a small group of people. This makes a few whales able to have a major influence on the price, thereby causing great volatility.

BEER Weathers The Storm, But Questions Remain

Fortunately for some BEER holders, following the first selloff the token price showed some partial rebound. Nevertheless, the harm was done. The episode reminded me sharply of the inherent dangers involved with memecoin trading.

BEERUSDT trading at $0.00028 on the daily chart: TradingView.com

Solana’s Memecoin Boom: A Double-Edged Sword

The BEER episode also clarifies the two-edged blade of Solana’s developing memecoin scene. Memecoin creators have found Solana, famed for speedier transaction speeds than Ethereum, a haven.

BEER coin down in the last 24 hours. Source: Coingecko

The simplicity of starting tokens on Solana has drawn a flood of fresh ideas, but it may also cause the market to get overly saturated. This combined with the absence of inherent value for many memecoins fuels a speculative frenzy whereby price swings are driven more by excitement than by real worth.

Featured image from Pixabay, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.