This week, the rapid rise and fall of dogwifhat (WIF) on Ethereum turned some investors into crypto millionaires.
According to on-chain data, whales pocketed enormous profits by getting in and out at the right time before WIF’s value plummeted.
Now, with the hotly-anticipated Sponge V2 (SPONGEV2) preparing for its Uniswap launch, could the enormous community hype propel early adopters to similar gains?
Whales Score $1.7m in Profit on New Ethereum-Based dogwifhat Token
While the original dogwifhat token took the Solana ecosystem by storm in early January, an Ethereum-based homage coin by the same name aimed to replicate its success.
As reported by on-chain analytics firm Lookonchain, insiders made massive profits to the tune of 770 ETH on this new WIF token – representing $1.77 million at the time.
These profits came from an initial investment of just 1.6 ETH, which amounted to $3,694.
Specifically, 12 new wallets rumored to be aligned with the project’s developers purchased 24 million WIF tokens right after they were launched on Uniswap.
They sold 15.34 million of those tokens just 12 minutes later while retaining the remaining 8.65 million.
Other regular investors piled in shortly after those initial transactions, hoping to profit like the early whales.
However, WIF’s price soon plunged by 90% as speculators took profits.
This situation raised questions about potential price manipulation by insiders, which is a common concern in the meme coin space.
Copycat Token Piggybacks on Original dogwifhat’s Success
The Ethereum-based dogwifhat was stealth launched on Uniswap on February 3, likely seeking to capitalize on the viral popularity of the original Solana-based token.
Meme coins on Solana had seen a parabolic rise in late 2023 and early 2024, sparking interest in similar projects hosted on the network.
The Solana dogwifhat rose from $0.073 on January 8 to an all-time high of $0.481 on January 18 – a 558% surge.
At its peak, the token briefly hit a market cap of $452 million, making it the fourth-largest meme coin globally, ahead of Pepe (PEPE).
However, WIF’s value is now 58% below January’s high, thanks to speculative investors taking profits.
Still, the incredible gains produced by WIF highlight the power of social media hype, especially for tokens launched on the Solana blockchain.
Seeing this, the team behind the Ethereum dogwifhat likely sought to replicate the success of its Solana counterpart by playing into the meme coin frenzy.
As a result, whale purchases like those seen on February 3 were likely attempts to cash in on the buzz and artificially inflate the token’s price.
New Meme Coin Sponge V2 Hopes to Be Next Market Sensation After Uniswap Listing
Now, the crypto community is eagerly anticipating the launch of a new meme coin called Sponge V2 – with many wondering if it could deliver astronomical returns like both dogwifhat tokens.
Sponge V2 is the second iteration of the original Sponge (SPONGE) token that delivered almost 100x returns for early investors in May 2023, around the same time that PEPE coin’s value exploded.
The team behind SPONGE is gearing up to release an improved version that could tap into the ongoing interest in low-cap meme coins.
This improved version will feature play-to-earn (P2E) functionality within a SpongeBob-themed racing game, where players can earn SPONGEV2 tokens by winning races and ranking on leaderboards.
Sponge V2’s developers also intend to list the token on “bigger and better” exchanges than its predecessor.
Considering the original SPONGE was listed on top-tier CEXs like Gate.io and MEXC, this could significantly boost SPONGEV2’s liquidity.
Major crypto influencers are already betting on a price pump for SPONGEV2, with Insider Alpha describing it as “the next 100x meme coin.”
If Sponge V2 can leverage this hype and make solid progress on its ambitious roadmap, which includes the goal of hitting a $100 million market cap, then its prospects might be looking good.
Visit Sponge V2 Website
Disclaimer: The above article is sponsored content; it’s written by a third party. CryptoPotato doesn’t endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company or project mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.
Readers are also advised to read CryptoPotato’s full disclaimer.