The token #moonpig has recently plummeted (with a single-day decline of over 30%, down about 60% from its historical high)
Mainly due to four factors:
Whale sell-offs and market panic became the direct trigger.
From May 24 to 26, a certain anonymous whale address concentrated on selling off profits, triggering a follow-up sell-off. Despite well-known trader James Wynn clarifying on the X platform that he had not sold his holdings, the community still suspected a connection and fermented doubts about a 'rug pull' scam (early investors had profited $1.4 million from a $2,000 principal).
Market trust has collapsed; the deteriorating macro market environment formed external catalysts. The Federal Reserve's hawkish 'dot plot' indicates only one rate cut in 2024 (originally expected three), which puts pressure on risk assets. The cryptocurrency ETF saw a net outflow of $600 million in a single week, Bitcoin fell to a monthly low, and the Memecoin sector (such as BONK and WIF) saw a decline of over 5% as funds withdrew, exacerbating selling pressure.
The intrinsic vulnerability of the project is the fundamental reason. As a Solana ecosystem Memecoin, this coin lacks real application scenarios, with its price entirely reliant on KOL promotions (James Wynn has promoted it multiple times) and speculative sentiment. The peak market cap of $113 million shows significant bubbles, and on-chain data indicates that holdings are concentrated in a few addresses (Wynn claims to hold 3% of the supply). Insufficient liquidity makes whale sell-offs easily trigger a collapse.
Market sentiment self-reinforces and accelerates the plunge. Panic sentiment is amplified through social media, triggering algorithmic stop-losses as the price breaks down, forming a vicious cycle of 'decline-sell-off-accelerated decline'.
Key timeline shows: on May 23, the price peaked at $0.1226 (up 1500% for the month), on May 24, whale sell-offs caused the price to flash crash from $0.135 to $0.054 (a single-day drop of 60%), on May 26, Wynn denied the market crash but failed to quell the panic, and by May 29, the price of $0.06445 was still down 47% from its peak.
This plunge essentially reflects the typical exposure of speculative assets to inherent vulnerabilities under macro bearish conditions, directly induced by whale sell-offs and a crisis of trust. The deeper contradiction lies in the price bubble lacking value support and liquidity risk, with external catalysts stemming from the overall capital withdrawal from the cryptocurrency market. It is necessary to warn that such highly volatile Memecoins are only suitable for investors with extremely strong risk tolerance. If the Federal Reserve maintains a high-interest-rate environment, the sector may continue to face pressure.
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