Cryptocurrency analysts are warning traders to exercise caution when dealing with a particular altcoin, as a large whale investor may be manipulating its price. Lookonchain, a cryptocurrency analysis platform, has identified suspicious trading patterns in the memecoin known as BEER.
The whale investor initially sells off a significant amount of BEER, causing the price to drop and triggering panic selling among individual investors. Once the price hits rock bottom, the same whale starts buying up the altcoin again, driving the price back up and enticing investors to buy in out of fear of missing out (FOMO).
As the price climbs, the whale once again unloads large quantities of BEER, reaping substantial profits from unsuspecting individual investors who bought in at higher prices. BEER, with a market cap of $171 million, is traded on exchanges like Gate.io, HTX, and Kucoin, and belongs to the Solana-based memecoin trend that has been gaining popularity.
Currently, BEER is trading at $0.0003071, reflecting a 22% decrease in the last 24 hours. This cautionary tale serves as a reminder to approach altcoin trading with vigilance and to stay informed about market trends and potential risks. Remember, this article is not investment advice.
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