Crypto Veteran Warns: A Handful of Sellers Can Wipe Out Meme Coins in Minutes

Long-time crypto dealer Ogle warned on July 13 that small meme cash with restricted liquidity can collapse inside minutes when just a few massive holders determine to promote.

Pointing to current losses across the newest sensation in the house, CASHCAT, the market watcher reiterated the dangers in chasing fast-moving tokens, the place paper features can disappear actually quick when leverage, skinny markets, and concentrated possession collide.

Why a Few Wallets Can Move the Whole Market

In a submit on X, Ogle made a fundamental observation about this market: that quite a bit of individuals are sitting on a whole lot of 1000’s, typically tens of millions of {dollars} in features that they haven’t truly cashed out. According to him, if even two or three of these merchants have been to promote, it might set off a serious worth drop, particularly for smaller meme cash.

“When a ton of individuals have made a whole lot of $ok or $m in a token, unrealized, in this sort of market, it solely takes 2-3 of them to promote (if the token is small, particularly a meme with little liquidity) for the whole lot to break down shortly,” he wrote.

The analyst defined that the issue turned even worse if the token was listed on perpetual futures exchanges, the place merchants usually borrowed funds to position massive bets.

He gave an instance of CASHCAT, the meme coin constructed on the Robinhood Chain, that jumped greater than 3,200% over the previous week and briefly pushed its market cap to round $226 million a few day in the past when its worth hit an all-time high (ATH) of $0.2288 per CoinGecko information.

According to Lookonchain, that rally noticed just a few winners, together with one dealer who purchased 15 million CASHCAT tokens for about $838 and turned that right into a revenue of over $1 million. However, had they waited just a few extra days, they’d have walked away with almost $2.9 million. Another dealer spent $69 and offered for $711, which, whereas a tidy 10x on their funding, would have been value $2.7 million had additionally they waited.

However, issues could have additionally gone south for these merchants since, as Ogle famous, the asset skilled some fairly massive liquidations, which got here proper after the launch of a perpetual contract on Hyperliquid.

Data from CoinGecko reveals CASHCAT’s worth crashed by roughly 60% with about 90% of lengthy positions liquidated, intensifying promoting stress and volatility. At the time of writing, the meme coin had made some restoration and was buying and selling slightly below $0.16, though that worth nonetheless represented an over 18% dip in 24 hours, pushing the coin greater than 30% under its ATH.

Utility Tokens vs. Short-Term Meme Bets

In his X submit, Ogle, who’s an advisor for the Trump family-backed World Liberty Financial, mentioned that whereas meme cash can produce fast returns, his buying and selling expertise had seen him make the largest features from utility-focused property resembling Solana, BNB, Ethereum, Litecoin, and Bitcoin.

According to him, these investments are slower performs that require persistence, and lots of merchants usually lose curiosity earlier than the property can ship bigger returns.

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