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Share link:In this post: Some of the hottest tokens have big numbers of large holders and some circular activity between wallet clusters. New tokens are often sniped by the team, but also by bot-driven traders, once again forming wallet clusters. Even older tokens often form wallet clusters or reveal that most of their supply has been sent to centralized exchanges.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the informati
New meme tokens launch every day and often end up among trending assets or the day’s big gainers. However, some of those tokens hold hidden risks of insider holdings.
Meme projects are usually community-driven. However, those assets are often closely tied to their creators, who try to remain anonymous. On-chain data reveal that some tokens are not fairly distributed and contain suspicious wallet clusters.
Read: The Complete Guide to Crypto Memes: Understanding Meme Coins
Some wallet clusters form naturally, when a user or an exchange like Raydium distributes tokens to more than one address. Others point to a single large entity holding a big part of the supply. The presence of big wallet clusters suggests there are insiders who may aggressively sell the token.
Wallet cluster tied to total loss for $RIZZ
One of the most dramatic examples of a wallet cluster is for RIZZ, a newly launched Solana-based meme token. After Bubblemaps revealed the wallet clusters during a RIZZ livestream, the price crashed, as ween on the chart, erasing 99% of the token’s value on June 21.
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