NOIDA (CoinChapter.com)— Beercoin (BEER), a beer-powered cryptocurrency powered by the Solana blockchain, has captured the attention of the crypto community, but for all the wrong reasons. Initially, Beercoin surged to a peak of $0.00057, boasting a market cap of $282 million.
BEER Price’s Rapid Ascent…
… And the subsequent descent. BEER price marked a rapid ascent of more than 644% since trading began on May 29 to reach an all-time high near $0.00059 on June 10. However, the Beercoin price rally ran out of juice, and the token started to bleed gains.
Since June 10, BEER price has dropped nearly 83% to reach a daily low near $0.0001. Allegations of Beercoin being a rugpull started doing the rounds. As a result, more users dumped the token and helped the token become one of the 5 crypto projects to watch this week.
Rug Pull Allegations Rock Beercoin
The allegations of a rug pull orchestrated by the project’s insiders overshadowed BEER price’s monumental price dump. Multiple sources within the crypto community have made accusations, alleging substantial insider trading activities that precipitated the token’s sharp decline.
A significant concern has been the large-scale sell-offs by Beercoin’s development team. According to a detailed thread by X user ‘@WazzCrypto,‘ key wallets linked to the insiders sold off massive amounts of BEER tokens, leading to the market collapse.
Specifically, four wallets sold between $1.2 million to $1.6 million worth of BEER tokens each, totaling over $5.4 million in a single day.
The transactions occurred shortly after Beercoin’s listing on Bybit and raised suspicions of premeditated dumping. Insiders allegedly controlled more than 50% of the total token supply, which enabled them to manipulate the market. They cashed out significant profits at the expense of regular investors.
The coordinated nature of these sell-offs suggests a planned strategy to exploit the token’s initial hype and subsequent listing gains.
The crypto community reacted strongly to these revelations, with many expressing outrage over the apparent exploitation. Users highlighted the project’s transparency issues and the concentration of token supply among insiders as major red flags.
Andrew Tate tried to capitalize on the ruckus to promote the DADDY crypto token. However, another crypto trader stopped that attempt very quickly by highlighting allegations of insider activity by the team involved in the DADDY crypto token.
However, the long-term impact of these allegations on Beercoin’s reputation and viability remains uncertain.
