Trader Loses 60% on $9M Solana's Dogwifhat Coin Due to Slippage

• Large Purchase of Dogwifhat (WIF) Leads to Massive Slippage Loss
• Financial Consequences of the Large Trade Order
• What is Slippage?
• The Speculation of a Marketing Stunt
• Dogwifhat's Rise in Popularity

Large Purchase of Dogwifhat (WIF) Leads to Massive Slippage Loss

On Thursday, a massive buy order was placed for dogwifhat (WIF), a popular meme coin in the Solana$104 5.03% blockchain ecosystem. This order, worth nearly $9 million, was processed over three transactions valued at $6.25 million, $1.78 million and $893,000 consecutively. This information is according to blockchain data linked to the Solana wallet address "5qYuZ9ZLShLB1MuV83xHRcTgVA9A5pUajnQUUcPbk3bf."

Financial Consequences of the Large Trade Order

However, placing such a substantial trade order in a low-liquidity pool appears to have resulted in a financial setback. The buyer purchased WIF for as much as $3, causing an immediate price spike in line with decentralized exchange operations. Shortly afterward, prices fell back to around 15 cents, similar to pre-purchase levels. This rapid fluctuation created a slippage loss exceeding $5.7 million for the buyer.

What is Slippage?

Slippage is a term used to describe the discrepancy between the estimated price at which a trade is initiated and the actual price at which it occurs.

The Speculation of a Marketing Stunt

Several market observers have speculated this large-scale trade could potentially be a "marketing stunt." Such a move could have drawn attention to WIF, especially considering the coin's price decline in recent weeks. Data from DEXScreener indicates that due to the buying pressure, WIF has seen a 50% increase in the last 24 hours. Transactions on decentralized exchanges alone amounted to $35 million, and the token now has a market capitalization of over $200 million.

Dogwifhat's Rise in Popularity

Dogwifhat has gained significant traction within the Solana ecosystem, becoming one of the biggest hits along with bonk (BONK) and other tokens. This rise in popularity was particularly noticeable during the meme coin frenzy on the blockchain in December. The significant hype generated by Dogwifhat created a sort of lottery for early buyers. Some of these early investors saw their initial investment of $1,000 in SOL turn into millions of dollars as prices surged quickly and abruptly.

Edited by Jonathan Stoker