Long-time crypto trader Ogle dropped a warning on July 13 that tiny meme coins with thin liquidity can evaporate in minutes once a handful of big holders hit sell. 🖤
Pointing at the brutal losses around CASHCAT the latest hype token he stressed how those paper riches vanish the moment leverage meets shallow books and whale wallets collide. 💸
How Tiny Liquidity Pools Turn Deadly Fast 💀
In a post on X Ogle shared a simple truth that far too many traders sit on hundreds of thousands or even millions in unrealized gains. Check the thread here. If just two or three decide to exit the price craters especially on smaller memes.
“When a ton of people have made hundreds of $k or $m in a token, unrealized, in this type of market, it only takes 2-3 of them to sell (if the token is small, especially a meme with little liquidity) for everything to collapse quickly.”
— cryptogle (@cryptogle) July 2024
Perps make the bleed worse because borrowed leverage amplifies every dump.
CASHCAT the Robinhood Chain meme soared over 3200 percent in a week and briefly touched a 226 million dollar market cap near its all-time high of 0.2288 dollars. One trader flipped 15 million tokens bought for 838 dollars into over 1 million in profit yet could have reached nearly 2.9 million by holding longer. Another turned 69 dollars into 711 yet missed a potential 2.7 million.
Those liquidations hit hard right after the Hyperliquid perp launch.
Data shows CASHCAT plunged about 60 percent with roughly 90 percent of longs wiped out which only fed more selling. At writing it recovered a bit to just under 0.16 dollars still down over 18 percent daily and more than 30 percent from the peak. See the chart tweet.
CASHCAT value crash details and liquidations
— InfoSpace_OG (@InfoSpace_OG) July 2024
Chasing Memes Versus Building With Utility Tokens 🌹
Ogle an advisor to the Trump-backed World Liberty Financial noted that while memes can spike fast his biggest wins came from slower utility plays like Solana BNB Ethereum Litecoin and Bitcoin. Those require patience many traders lose interest before the real upside arrives. 🕯️ ⚰️ 🦋 ☠️
Just another echo from the void by iconofsin.eth 💖
