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Solana’s Latest Meme Token Nets Unknown User $100k – And It’s Not BONK
- A crypto investor, amused by the Dogwifhat meme coin, which features a dog in a hat, made impressive gains but possibly left too much on the table.
- Potential investors in meme coins should be aware of the high volatility and risks, including limited liquidity on smaller platforms.
- Low trading volume can lead to difficulties in executing large trades and significant price drops, as exemplified by WIF’s recent 30% loss in value within an hour.
“I Should Have Sold – But the Dog Had a Hat”
Unless you have been spending time on a remote island without internet access, you’ve probably heard of Solana’s hottest meme coin, Bonk (BONK), by now. And while Bonk has experienced the fastest growth of any crypto – on the hourly, daily and weekly timeframes alike – it is by far the only one.
As CoinDesk reported, crypto hopeful Blockgraze bought another Solana meme coin, called, wait for it – Dogwifhat (WIF).
You heard that right, the latest meme is a little dog wearing a hat. Blockgraze told CoinDesk that he turned US$1,000 (AU$1,493) into US$100,000 (AU$149,329) with US$25,000 (AU$37,332) in realised profits.
You may wonder why they didn’t cash in all the profits. Well, that’s a tale all too familiar to many in the crypto world.
I thought the dog with the hat was very funny and so I bought some – I should have probably sold several times, but the dog had a hat.
Blockgraze
Extreme Volatility – Extreme Risk
For those interested in buying the Dogwifhat (WIF) token, the bad news is no major exchange is trading the token yet. Anyone keen to scoop up some WIF has to make their way to Raydium, Solana’s eighth-largest DeFi platform by volume. While meme coins are risky any day of the week, investors should keep in mind the trading volume of a platform before buying.
A lower trading volume suggests a lack of liquidity, which means it might be difficult to buy or sell large amounts of the token without causing significant price fluctuations. This can lead to a situation where you might not be able to execute trades at your desired prices, or it might take a long time to fill your orders, especially for larger amounts. Which could lead to one not being able to sell off their Dogwifhat in a hurry.
Notably, while writing this, WIF is experiencing a dramatic drop in price, losing 30% of its value in the past hour, highlighting the extreme volatility of these meme tokens.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
