Floki leads meme coin crash as dormant whale dumps 15b tokens
Floki token retreated sharply on Friday, Aug. 30, making it the worst-performing meme coin in the industry.
Floki (FLOKI), the sixth-biggest meme coin, fell by over 20%, reaching a low of $0.00012, its lowest point since Aug. 21. It has dropped by over 23% from its highest point this week and by 64% from its highest point this year.
Other meme coins like Bonk (BONK), Popcat (POPCAT), and Mog Coin (MOG) were down by over 10% on Aug. 21.
The main catalyst for Floki’s sell-off was the movement of 15.2 billion tokens worth $2.27 million by a dormant account to Binance. Such moves to exchanges are typically followed by heavy selling activity, which can trigger stop losses from other holders who will join the selling frenzy.
Data by Spotonchain shows that more big holders continued moving their Floki tokens out. Another big holder transferred tokens worth $629,000 to MEXC on Friday.
More data shows that the net outflows of Floki from both centralized and decentralized exchanges continued this week. Net outflows from CEX exchanges fell to their lowest point since Aug. 21, while those from DEXes rose to the highest level in over a week.
Floki’s price action also coincided with the weakness in the crypto industry as Bitcoin (BTC) remained below $60,000. The total market cap of all coins has also dropped from over $2.3 trillion early this week to $2.09 trillion.
Launched in 2021, Floki has become one of the biggest players in the meme coin industry, with a market cap of over $1.27 billion. This growth happened as the developers worked to transition it from a mere meme coin to an active ecosystem.
They launched TokenFi, a platform for tokenizing real world assets, Floki Locker, a DeFi network with over $31 million in assets, and Valhala, a play-to-earn NFT metaverse. In an X post, the developers noted that Valhalla would enter the next phase of growth, backed by its $30 million treasury.
Floki price has weak technicals
Floki maintains some weak technicals as the token formed a death cross pattern on Aug. 27 when the 200-day and 50-day moving averages crossed each other. The Percentage Price Oscillator, a unique form of the MACD, remains below the neutral point.
Therefore, Floki may continue falling as sellers target the next point at $0.0000954, its lowest point in August and 25% below Friday’s level.
Update Sept. 10: The whale movement happened on the same day that 10% of Simon’s Cat (CAT) supply was airdropped to FLOKI holders on Binance’s exchange. To qualify, users had to have at least 400,000 FLOKI tokens on Binance. Therefore, there is a chance that the whale moved the tokens to Binance to qualify for the CAT airdrop instead of selling.
