cryptopolitan.com
A holder of Maker (MKR) tokens sold at a loss and moved into some of the hottest meme tokens. Instead of moving the assets to Sky, the whale chose SPX6900 ($SPX) and $MOG.
A former token millionaire in Maker (MKR) is switching to meme tokens. The known wallet shed all MKR tokens, instead of swapping them for the new $SKY asset after Maker’s rebranding.
The known wallet singles out the whale as a selective token millionaire, based on Nansen’s data. The wallet was funded with $ETH from Binance, then acquired $SPX and $MOG through Uniswap V2 and Orca.
The wallet shed all MKR holdings, instead buying $SPX and $MOG, while retaining $ETH and USDT. The whale wallet is not among the largest 150 holders of $SPX or $MOG, though still building up a portfolio valued at more than $2.2M. In total, the profit from loading up on the two meme tokens is around $230K.
The tokens are more volatile and can lead to deep losses, though both assets are trending and still mentioned daily by meme influencer Murat Mahmudov. $MOG has also drawn in the market maker Wintermute, engaging in high-velocity transactions with Bybit.
MKR phased out, price slides close to $1K
As MKR is phased out and there is no more demand to serve as collateral, the price has been unraveling for months. MKR is now at $1,192.20, threatening to get closer to $1K and into three-digit prices. In the past six months, MKR slid from a yearly peak of $3,934.36.
The whale sold MKR after losing more than $1M in value. The current portfolio is already erasing the losses, as $SPX traded at $0.75. In the past few days, the whale acquired $SPX at a cost basis of $0.67.
$MOG is also moving near an all-time high, though it’s an extremely risky bet. $MOG trades at $0.000002, with the potential to move by a factor of 10 or 100. The asset has already performed a 100X jump from its initial price at the end of 2023. $MOG is now in a new price discovery stage, while being promoted as the next $1B meme token.
Both $SPX and $MOG compete to break the $1B valuation target, lining up among high-visibility memes. Despite the highly active meme token market, the $1B landmark is not easy. Yet more projects manage to move above $500M within the first weeks of active promotion. Memes have replaced altcoins as a source of speculative gains, while older tokens are still lagging behind Bitcoin (BTC). Even with a new peak in meme interest, the Altcoin Season Index is stagnant at 29 points.
Meme tokens are also expecting a super-cycle, where a small selection of tokens is seen as potentially surpassing other assets. Meme tokens, however, can also erase value quickly. At this point in the market, however, MKR and $SKY are also facing downward pressures, while having small chances of a speculative upside.
Sky builds up value after collateral reorganization
During the process of switching to USDS and $SKY from $DAI and MKR, the residual vaults of Maker still holds more than $4.36B in value locked. MKR has a market cap just above $1.03B and may be considered undervalued, except for being phased out for $SKY tokens.
$SKY is still in a period of price discovery and is much more unstable. The asset trades near its lower range at $0.05, with still limited exchange listings.
Sky has already deployed a total of $100M USDS to Aave, becoming one of its main sources of passive income. Sky itself still carries crypto collaterals, RWA vaults, as well as other non-crypto collaterals. $DAI is still active, though in the process of being swapped for USDS.
The conversion of MKR to $SKY has been live for about a month, and around 8% of the tokens have been swapped. MKR itself is still traded and considered oversold, but open interest is near the low range for the past six months. Most of the available $SKY is still in Uniswap V3 and V2, where it trades in ways similar to meme tokens while it gains more listings on tier 1 exchanges.