Memecoins have been making headlines lately, particularly on the Solana network, with traders keeping a close eye on popular names like MooDeng, Bonk, and Pepe.
Early sale costs trader a huge payout
This past week the attention shifted to the Sui Network, a new blockchain that claims to handle over 50,000 transactions per second, making it faster than Solana.
The increase in activity is largely due to the success of Sudeng, or HIPPO, which launched nearly six days ago and has been experiencing crazy growth.
The recent surge in HIPPO’s market cap and liquidity has made it a hot topic among traders on Sui Network’s decentralized exchange, Cetus 4.
Traders who got in early and chose to hold onto their investments instead of selling during market fluctuations are now reaping substantial profits.
Unfortunately for one memecoin trader, their decision to sell early has resulted in regret.
The trader sold 258 SUI for about $433 to acquire 1.8 billion HIPPO tokens, which accounted for nearly 20% of the total supply of 10 billion tokens.
Days later, they sold all their HIPPO for 6,299 SUI, earning nearly $11,000.
The gut punch
The missed opportunity becomes clear when considering that if the trader had waited just another 36 hours, their 1.8 billion HIPPO would now be worth over $25 million.
While the $11,000 profit represents a more than 200-fold gain on their initial investment, the somehow premature sale highlights the risks involved in trading such volatile assets.
Liquidity concerns
Even if the trader had decided to hold onto their tokens and wait for prices to rise further, selling all at once would have been difficult.
The liquidity of HIPPO is pretty low, data from SuiScan shows that one address controls over 7.6 billion tokens, which is more than 76% of the total supply.
If this trader attempted to sell a large amount of HIPPO at once, it could drive prices down and trigger panic selling among other holders.
As it stands now, traders are closely watching HIPPO’s performance. Being a memecoin means its value heavily relies on hype and the FOMO.
