blockchainreporter.net
A cryptocurrency sniper recently suffered a significant financial loss after investing 15,000 SOL ($1.9 million) to snipe 177.9 million $WATER tokens. Despite the hefty investment, the sniper managed to sell the tokens for only 9,306 SOL ($1.2 million), resulting in a loss of 5,694 SOL ($716,400) within less than 10 minutes.
The incident sparked cautionary advice within the crypto community, emphasizing the risks of sniping. Sniping involves purchasing tokens when they are launched to sell them quickly for a profit. Not all snipers can make money, and unfamiliarity with the practice can lead to substantial financial losses.
Not all snipers can make money!
— Lookonchain (@lookonchain) June 24, 2024
If you are not familiar with sniping, please do it with caution.
This sniper spent 15K $SOL($1.9M) to snipe 177.9M $WATER, which is less than what other snipers bought.
So he got only 9,306 $SOL($1.2M) back after selling all and lost 5,694… pic.twitter.com/v1uwfti8hM
Allegations of Insider Dumping by $WATER Devs
Adding fuel to the fire, allegations have surfaced accusing the $WATER development team of unethical practices. According to a tweet, the developers have sent a significant supply of $WATER tokens to their wallets and dumped them on the market. One particular wallet, allegedly controlled by the development team, was reportedly sent 44 million $WATER tokens and currently holds 35 million.
Critics argue that such actions exemplify why presales can be detrimental to investors. They allow the development team and insiders to secure and sell tokens before the broader community has the opportunity to participate. This practice undermines trust and raises questions about the integrity of the $WATER project and its developers.
$WATER devs are sending supply to themselves and then dumping it. This wallet, along with many others were sent 44 million $WATER tokens. The wallet currently contains 35 million tokens. This is why presales are a bad idea. The development team and insiders get their tokens and… pic.twitter.com/ErgPCuSVNV
— Crypto Rug Muncher (@CryptoRugMunch) June 24, 2024
The crypto community is urged to exercise caution and conduct thorough due diligence before investing, particularly in projects with presale structures that may favor insiders over regular investors. The recent events surrounding $WATER serve as a stark reminder of the potential pitfalls in the volatile world of cryptocurrency.