TL;DR
- The Ethereum version of the memecoin “dogwifhat” experienced high volatility over the weekend, generating gains for some and concerns for others.
- Over a dozen wallets, considered “insiders” by the on-chain analytics tool Lookonchain, acquired 24 million Ethereum WIF tokens for $3,000 in ether, in the same block in which they were issued, suggesting prior knowledge of the exact timing of issuance and trading.
- Concerns about ownership led to a rapid decline in value, exceeding 80% since Saturday.
During the past weekend, the Ethereum version of the memecoin “dogwifhat” experienced high volatility, generating gains for some and concerns for others. Although not linked to the Solana-based variant (WIF), which reached a considerable market capitalization, the new iteration on ETH was not without controversy.
More than a dozen crypto wallets, categorized as “insiders” by the on-chain analytics tool Lookonchain. Acquired 24 million Ethereum WIF tokens for $3,000 in ether. Interestingly, these acquisitions took place in the same block where the deployer initiated transactions. Suggesting precise knowledge of when the tokens would be issued and traded.
12 fresh wallets (insiders) made a profit of 770 $ETH($1.77M) on #dogwifhat with only 1.6 $ETH($3,694)!😱
These wallets were created yesterday and bought #dogwifhat in the same block where the deployer opened trading.
Other users started to buy #dogwifhat 12 minutes later.… pic.twitter.com/d3cil8DB8t
— Lookonchain (@lookonchain) February 3, 2024
The price surge from fractions of a cent to 30 cents resulted from the anticipation and interest generated around these tokens. However, concerns about coin ownership caused a rapid value decline, exceeding 80% since Saturday.
The Supposed Creator of Dogwifhat Unleashes Memecoin Volatility
The issuance of Ethereum WIF was carried out by the user X @issa. Who claimed to have created the original “dogwifhat” meme in 2019. Despite significant demand for the tokens. @issa emphasized having no affiliation with the $WIF team. He never owned or received any allocation of the cryptocurrency.
Despite the controversy, @issa’s direct involvement in Ethereum WIF tokens generated strong demand. With a trading volume exceeding $7.7 million in the last 24 hours, involving over 4,500 holders, according to DEXScreener data. This highlights the dynamism and complexity of the crypto market. Where creators’ influence can have a significant impact on the perception and value of a coin.
Events of this nature underscore the need to take all necessary precautions when making substantial investments in such assets. Characterized by high volatility. In other words, significant gains as well as significant losses.
