Trader immediately lost 60% after buying $9 million in Solana Memecoin WIF

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An enthusiastic buyer appears to have spent nearly $9 million on Thursday for Dogwifat (WIF), one of Solana’s most viral meme coins that brought early investors millions in December Net income in U.S. dollars.

Someone did this an hour ago:

– Purchased $8.8 million worth of $WIF Print 3 transactions
– Currently worth $3.1 million

Unrealized losses amounted to US$5.7 million

Why? pic.twitter.com/S8gZvYeHYO

— Gumshoe (@0xGumshoe) January 10, 2024

The purchase involved three transactions worth $6.25 million, $1.78 million, and $893,000, and the blockchain data was tied to the Solana wallet address “5qYuZ9ZLShLB1MuV83xHRcTgVA9A5pUajnQUUcPbk3bf.”

But placing such a large trade on a relatively illiquid pool appears to have caused financial disaster: Buyers ended up buying WIF for as much as $3 before the price fell back to $15, and the price immediately surged, which Consistent with how decentralized exchanges operate. cents, roughly the same level as before the purchase, causing the trader to lose more than $5.7 million in slippage.

Slippage is the difference between the expected price at the time of a trade and the actual price when the trade occurs.

Some market observers said the deal could be a “marketing ploy” that could draw attention to WIF as prices have plummeted in recent weeks.

Data from DEXScreener shows WIF is up 50% in the past 24 hours amid buying pressure. On decentralized exchanges alone, traders moved $35 million, giving the token a market capitalization of over $200 million.

WIF price chart. Source: DEXScreener

When memecoin craze hit the blockchain in December, the memecoin became one of the hottest products in the Solana ecosystem, along with Bonk (BONK) and other tokens.