Dogwifhat (WIF) has been gaining traction and popularity in the meme coin realm recently with its staggering gains. The cryptocurrency market is known for its extreme volatility and ability to generate tremendous wealth. However, the swift gains can quickly turn into losses if not properly managed.
One anonymous trader learned this lesson the hard way after selling a cryptocurrency too early and missing out on what could have been a $693 million windfall.
The cryptocurrency in question is WIF, the native token of the Dogwifhat project. According to on-chain data analyzed by Lookonchain, the developer of dogwifhat sold 350 million WIF tokens for 511 SOL (worth around $29,000 at the time). He sold WIF within two days of the token becoming tradeable on exchanges.
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Dogwifhat developer makes a $693 million mistake
Had they held onto those coins instead of selling them, they would now be worth a staggering $693 million based on WIF’s current price.
While the developer was likely trying to secure some profits after launch, the opportunity cost of selling so swiftly was massive. WIF prices exploded in short order, with the coin rising over 1,100% in the past 30 days alone. It serves as a cautionary example that timing the often volatile crypto markets can be exceedingly difficult.
However, the developer did not sell their entire supply right away. Lookonchain points out that they still held a separate wallet with 489,674 WIF tokens that were not immediately traded.
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Around $110 was spent to acquire those coins, which have since appreciated to $1.17 million in value. So while the profits could have been substantially higher, the developer likely still netted a life-changing amount.
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While the developer no doubt still came out ahead, the lost opportunity of nearly $700 million will likely haunt them for some time. It serves as a lesson to the crypto community about the virtues of patience and avoiding reactionary selling during periods of extreme market volatility.