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Trader Lost Over 60% To Slippage On Solana Meme Coin Dogwifhat
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Trader Lost Over 60% To Slippage On Solana Meme Coin Dogwifhat

  • An enthusiastic trader lost over 60% to slippage on Solana meme coins Dogwifhat.

An apparent fat-finger trader, seemingly spent nearly $9 million on Thursday to purchase dogwifhat (WIF), one of Solana’s most-viral meme coins that netted millions of dollars for early investors in December.

The purchases were done over three transactions worth $6.25 million, $1.78 million and $893,000, blockchain data tied to Solana wallet address “5qYuZ9ZLShLB1MuV83xHRcTgVA9A5pUajnQUUcPbk3bf” show.

But placing such big a trade order on a relatively low-liquidity pool seems to have spelled financial disaster: 

The buyer ended up purchasing WIF at as high as $3 as prices spiked immediately, in line with how decentralized exchanges work, before prices plunged back down to 15 cents, close to the level before the buys, leaving the trader with a slippage loss of over $5.7 million.

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Slippage refers to the difference between the expected price at which a trade is placed and the actual price at which the trade occurs.

Some market watchers have termed the trade a possible “marketing stunt,” one that could have drawn attention to WIF as prices took a hit in recent weeks.

WIF is up 50% in the past 24 hours on the buying pressure, data from DEXScreener shows. Traders exchanged $35 million on decentralized exchanges alone, and the token has a market capitalization of over $200 million.

The meme coin turned out to be one of the biggest hits in the Solana ecosystem recently, alongside bonk (BONK) and other tokens, as a meme coin frenzy occurred on the blockchain in December.

The significant hype it drew created a lottery of sorts for early buyers, as some turned $1,000 worth of SOL into millions of dollars as prices quickly and suddenly climbed.

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