Trader invests $9 million in the WIF meme token and immediately loses 63% of the funds on slippage

The reason was the low liquidity on the exchange

11.01.2024 - 14:55

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What’s new? On January 11, an unknown user invested $9 million in the “dog” meme token dogwifhat (WIF) on the Solana network. He purchased in three transactions: 6,25 million, 1,78 million, and $893 000. In this, placing such large orders in the pool of a decentralized exchange (DEX) with low liquidity led to a sharp jump in the price of the asset from $0,15 to $3. As a result, the trader’s losses from slippage exceeded $5,7 million.

Cointelegraph’s material

Slippage is the difference between the expected transaction price and the actual price at the time of execution. It usually occurs on DEX as a result of high volatility or low liquidity in a certain trading pair.

What else is known? Buyer pressure over the last 24 hours has led to a 50% increase in the WIF rate. The coin gained popularity in December alongside other meme tokens in the Solana ecosystem, such as BONK.

At the time of writing, these assets top the Solana-based meme tokens ranking in terms of daily trading volume and market capitalization. Amid the growing popularity of such assets, daily transaction volume on Solana has reached its highest level since October 2022.

Daily transaction volume on Solana has reached its highest since October 2022

The surge in the indicator is provided, among other things, by an increase in the activity of meme token holders

Earlier, an unknown user paid a $66 000 fee to encrypt data on the Bitcoin network using Ordinals, a protocol that records media data to the blockchain.

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