Beercoin Down by 80%: Party Seems To Be Ending for Solana-Based Meme Coin
Anjali Belgaumkar21 Jun 20242 min read
LookonChain’s analysis recently reported that another major wallet associated with the Beer Coin is on a selling spree, causing the price to plummet by over 80% in the last few days. Despite Beer Coin’s initial excitement and strong community, it now seems to be the end. Recently, the coin was listed on the Raydium decentralized exchange and other DEXes on the Solana blockchain.
For those who missed it, Beer Coin is a German meme cryptocurrency launched a few weeks ago. It managed to surge in price during its pre-sale phase, reaching a market cap of over $300 million. Promoted by numerous influencers, Beer Coin, fundamentally without a real use case, represented beer and aimed to unite people globally. It was purely a meme coin that gained significant traction through effective marketing and promotions, driving its price and market cap up rapidly.
At its peak, the coin briefly ranked fifth in trading volume on the Solana network, showing a big rise in trading and investor interest. This rally followed a price pump in early June, but the increase slowed last week due to speculation of market manipulation by large holders. However, in the past few days, Beer Coin has plummeted by over 80%, now sitting at a market cap just under $50 million. Once a top 200 meme coin, it has practically crashed overnight.
According to Cryptoseeks, the likely cause of Beer Coin’s crash is a short seller attack, where both small and large investors, including team members, sold off their holdings. This selling pressure weakened the community and caused the price to collapse. I
Although Beer Coin didn’t crash to zero like Tera Luna, the significant sell-offs have severely damaged investor confidence. Many investors have lost substantial amounts, and new investors are wary due to the negative chart trends.
