CoolCoin Trader Loses over 1000 SOL, Shows Not Everyone Wins With Memecoin
One memecoin trader lost over 1k SOL trading COOL after the team started dumping the token. Risks of memecoin trading now on rise as developers take to sniping.
Uno…
A memecoin trader lost 1,067.42 SOL in less than 30 minutes trading CoolCoin after the team dumped the memecoin for profit.
According to Lookonchain, the trader spent 1600 SOL on COOL hours after it launched. But they had to sell in less than 30 minutes for 532.58 SOL due to price plunging. This meant a loss of about $152k.
CoolCoin is a new Solana-based memecoin that launched earlier today after much hype. The token's market cap rose to around $200 million after launch but is now below $30 million.
Its drop is due to the discovery that the team sniped the project, taking around 80% of the supply before releasing the contract address to the community.
They used two wallets with 35.4 SOL to buy 574.27 million COOL and then transferred the tokens to multiple addresses. the insiders have started selling the tokens, making 11,896 SOL from dumping 22.81 million COOL.
CoolCoin Team Defends Sniping
In a hilarious turn of events, the CoolCoin team has defended sniping the project and denied the allegations of a rugpull.
According to a post on X, the team said it was user pressure from influencers who threatened to FUD the token if they were not given the contact address before the rest of the community.
Instead of succumbing to this blackmail attempt, the team said it decided to launch in stealth mode and use snipe tokens to ensure the CA was stable before sharing it with the community.
“Right now, we’re focused on building and fixing what may appear as any miss-moves from the team. Despite challenges, we remain steadfast in our commitment to building and telling the story of CMU.”
Memecoin Developers Dumping on Buyers
The COOL incident is not unique, as more memecoin developers are now sniping their projects and dumping them on buyers.
Recently, insiders for TIM memecoin turned $6,404 worth of SOL into $8.28 million by buying the token 3 minutes after it started trading. They funded two newly created wallets with 44.76 SOL and bought 526.6 million TIM, 52.66% of the supply.
They have now transferred the tokens to several addresses and sold them in small amounts to avoid suspicion. Unsurprisingly, TIM is down 43% in the last 24 hours.
Meanwhile, the risks of memecoins extend beyond the bad actor developers. The extreme volatility of memecoins also means several traders are losing funds due to bad trading strategies.
One trader lost 125.52 SOL trading GUMMY and MANEKI over the last five days. Out of 7 trades made, he has lost on 6 occasions because he keeps buying high due to FOMO and selling low out of panic.
