The downfall of Beercoin by 83% is not the only obstacle facing the project
Beercoin (BEER), a unique beer-fueled cryptocurrency running on the Solana blockchain, has attracted attention in the crypto world, but for all the wrong reasons. Initially, Beercoin saw a significant surge to $0.00057, boasting a market cap of $282 million.
BEER Price’s Rollercoaster Ride
BEER’s price soared by more than 644% after its launch on May 29, reaching an all-time high near $0.00059 on June 10. However, the rally quickly lost steam, and the token began to lose value.
Since June 10, the price of BEER has plummeted by almost 83%, hitting a low near $0.0001. Rumors of a rug pull involving Beercoin circulated, causing more users to sell off the token and earning it a spot as one of the top 5 crypto projects to keep an eye on this week.
Accusations of Insider Trading
The accusations of a rug pull orchestrated by the project’s insiders overshadowed the significant price drop of BEER. Various sources within the crypto community claimed that there was substantial insider trading that led to the sharp decline in the token’s value.
A particular concern was the massive sell-offs by Beercoin’s development team. According to a detailed post by ‘WazzCrypto’, key wallets linked to insiders sold off large amounts of BEER tokens, totaling over $5.4 million in a single day.
The coordinated nature of these sell-offs indicates a deliberate strategy to take advantage of initial hype and listing gains. The community reacted strongly to these allegations, criticizing the lack of transparency within the project and the concentration of token supply among insiders.
Andrew Tate’s failed attempt to capitalize on Beercoin’s issues by promoting the DADDY crypto token was quickly shut down by another crypto trader who pointed out allegations of insider activity by the DADDY team.
The long-term effects of these allegations on Beercoin’s reputation and sustainability remain uncertain.