Cryptocurrency markets continue to astonish with unexpected events. Recently, an altcoin’s value plummeted by 90% during a live broadcast by its founder, an event reminiscent of a movie scene. This occurrence serves as a stark example of the unpredictable nature of the crypto world.
What Triggered the Sudden Drop?
Nicolas Vaiman, CEO of Bubblemaps, was participating in a Space broadcast on the social media platform X. During the live introduction of the RIZZ Token, its price experienced a dramatic fall. Vaiman described the event as “brutal,” while the token team appeared visibly distressed. The RIZZ Token, which launched on the Solana network last week, had reached a commendable volume of $8 million, a significant figure for a new meme coin.
Who Were the Sellers?
During the broadcast, the Bubblemaps team highlighted details about the “bubbles” on the coin’s bubble map, revealing that a few accounts held large accumulations. They disclosed that around 80% of the token supply was controlled by the team. The sellers, according to Bubblemaps, were those who had purchased the token at low prices in the initial minutes of its launch. Vaiman noted that he was not initially invited to the broadcast but joined unexpectedly, triggering the drop while explaining the holder table.
Key Takeaways for Investors
– Monitor token distribution closely to avoid concentration risks.
– Be cautious of tokens with a large supply held by the founding team.
– Check the credibility and authorization of the token’s founder.
– Stay wary of sudden price movements during public announcements.
– Conduct thorough research on the project’s background and previous activities of its developers.
Vaiman also shared that a source claimed RIZZ’s founder, “Rick,” might not be fully authorized. He emphasized the prevalence of scams on the Solana network, noting that many meme coins rise quickly only to result in significant losses for inexperienced investors.
In a concluding remark, Vaiman pointed out the risks for RIZZ Token, mentioning that a group of developers from Singapore, known for creating and rugging meme coins, might be manipulating the supply. These developers reportedly accumulate tokens by transferring them to new wallets, making tracking difficult but possible through timing analysis.