The German meme cryptocurrency, Beer Coin, which once dazzled the market with its meteoric rise, has experienced a devastating price drop of more than 85% in just a few days. This significant downturn follows an analysis by LookonChain, revealing that a major wallet associated with Beer Coin has been aggressively selling its holdings, contributing to the sharp decline.
Another wallet related to the #beercoin team is selling $BEER and the price of $BEER has dropped more than 60% today!
This wallet received 8.88B $BEER from the #beercoin team wallet “8VY4LF…fDd5G2”, and sold 8.7B $BEER for $1M in the past 2 days.https://t.co/E105MTcVSM pic.twitter.com/zI9BpycMyH
— Lookonchain (@lookonchain) June 18, 2024
Beer Coin, which was launched just weeks ago, quickly garnered attention and excitement within the crypto community. Its price surged during the pre-sale phase, reaching a market capitalization of over $300 million. The token, symbolizing beer and aimed at uniting people globally, was heavily promoted by influencers despite lacking a real use case. At its peak, Beer Coin ranked fifth in trading volume on the Solana network, highlighting the intense investor interest it initially attracted.
However, this enthusiasm was short-lived. Speculation of market manipulation by large holders emerged last week, leading to a gradual slowdown in its price rally. In the past few days, the coin’s value has plummeted, reducing its market cap to just under $50 million. Once considered a top 200 meme coin, Beer Coin’s dramatic fall has sent shockwaves through the market.
The collapse occurred due to a short seller attack, in which both small and large investors, including team members, sold off their holdings. The selling pressure weakened the community and led to a sharp drop in price. Although Beer Coin did not crash to zero like Terra Luna, the severe sell-offs have significantly damaged investor confidence, resulting in substantial financial losses for many.
Notably, one major investor, or “whale,” who invested approximately $7.68 million in Beer Coin, has seen the value of their holdings decrease by 76%, now worth only $1.81 million. Despite this considerable loss, the whale has not sold any of their tokens, holding on in hopes of a market rebound.
The recent Beer Coin listing on the Raydium decentralized exchange and other DEXes on the Solana blockchain did not succeed in stabilizing its plummeting value. On June 10, Beer Coin reached an all-time high of $0.0005798, but it has since dropped to a mere $0.00005818, according to CoinMarketCap. The decline intensified when another whale dumped 5 billion BEER tokens for 7,450 Solana (SOL), worth approximately $1.08 million, exacerbating the selling pressure.
The broader meme coin market, which saw a bullish spike in late 2023 and early 2024, is also cooling off. Other meme coins like Dogewithat (WIF), Bonk (BONK), and Book of Meme (BOME) have been part of this trend, alongside politically themed tokens such as ConstitutionDAO (PEOPLE) and MAGA (TRUMP). Analysts predict that the upcoming US presidential candidates’ national debate might reignite interest in political-themed tokens, but the current bearish sentiment could push many tokens further into the red.
