Diamond Hand Moo Deng Millionaire Still Hodling Despite Rapidly Declining Price – Decrypt

Moo Deng (Moodeng), the newest meme coin sensation based mostly on Thailand’s pygmy hippo star of the identical title, has begun its fast descent. But, big-time token holders are nonetheless hoping for a rebound.

After reaching a market capitalization peak of $322.7 million on Sept. 28, Moodeng has fallen 50% to $0.18 in simply three days, clocking a 26% drop within the final 24 hours alone.

One early purchaser, recognized by his pockets deal with as “Dealer Db3P,” purchased $800 value of Moodeng on Sept. 10—the day it launched.

A little bit over two weeks later,  that funding had ballooned to a whopping $10 million. Regardless of the token’s declining worth lately, the dealer seems to be holding quick even, because the coin plummets by roughly $1 million each day. His holdings are actually value half, nonetheless a hefty $5 million.

So why not money out whereas he can?

The coin’s fast rise and subsequent crash are an ideal instance of a basic difficulty within the memecoin area: liquidity.

With Moodeng’s comparatively small market cap, at $176.1 million, massive bag holders who personal vital quantities of the token face a problem: All eyes are on Dealer Db3P’s pockets.

When he makes an attempt to promote his holdings, it may set off an excellent deeper crash, making it almost not possible to exit with out inflicting market chaos.

Liquidity issues typically exacerbate volatility. Meme cash are particularly vulnerable to massive worth swings resulting from their small market sizes and speculative nature.

For Moodeng, the place main holders management a big portion of the availability, this implies even a single massive sale may drastically have an effect on costs.

In consequence, the whales are opting to attend, holding onto their positions as they monitor the market or money out in small batches for extended durations of time.

Easy methods to make Thousands and thousands investing in Nothing

Moodeng’s meteoric rise started on Sept. 19 when its namesake, a child hippo at Thailand’s Khao Kheow Open Zoo, grew to become an Web sensation. Thousands and thousands of views later, the Solana-based token launched on Pump.enjoyable two weeks prior abruptly discovered itself within the highlight.

By Sept. 24, Moodeng’s market cap hit $70 million, blowing previous different meme cash on the platform. Its Twitter fanbase grew to 39,000 followers, outpacing the precise variety of token holders.

Even nonetheless, the token’s worth saved climbing, surging 34% in a single day on Sept. 26. That 597% weekly achieve pushed Moodeng to the highest of the Pump.enjoyable heap, with its market cap ballooning to $265 million.

All for yet one more coin that had completely no utility.

Moodeng wasn’t alone on this frenzy. Simply as Dogwifhat and Pepe did a couple of months in the past and Shiba Inu did a couple of years in the past, this small coin pushed different tokens with it, from OG meme cash like Dogecoin to Iggy Azalea’s MOTHER token and the Trump-inspired MAGA Coin.

Sept. 27 witnessed one other 50% spike for Moo Deng, with the token reaching its all-time excessive of $0.41. That is when our thriller dealer’s $800 guess theoretically flirted with the $10 million worth—and that’s the day the token began its slide to its present worth.

Amid this meme coin mania, some voices raised issues. The nameless Moodeng whale confronted insider buying and selling accusations. Critics pointed to the token’s huge features and questioned the timing of the preliminary funding.

However is that this really a case of insider buying and selling? At this level, who is aware of? Quite a lot of these success tales (not less than the legit ones) do have a tendency to return from meme coin hunters—individuals ready and shopping for each nugatory token that seems, each airdrop, each time. And typically they get fortunate.

For instance, one Moo Deng dealer turned $7,000 of Moodeng into $1 million after cashing out inside two weeks after their preliminary purchase. In accordance with blockchain information, the dealer now has 250 tokens left.

This kind of decentralized lottery may make some sense for people who find themselves keen to lose their cash betting on the following meme coin sensation. However for the remainder of us, it might be higher to spend money on a ticket to Thailand to see the actual child hippo.

Edited by Sebastian Sinclair