Ethereum-based Dogwifhat pumps amid insider trading rumors

In the recent crypto landscape, a surge of over $1.3 million flooded into multiple crypto wallets during the weekend, all thanks to a substantial acquisition of the Ethereum version of the meme coin known as “dogwifhat” (WIF). It’s crucial to distinguish this Ethereum iteration from the Solana-based WIF, which emerged in late November, quickly soaring to a market capitalization surpassing $350 million.

Ethereum-based Dogwifhat nets insiders millions

On-chain analytics, with a spotlight on Lookonchain, meticulously traced the involvement of over 12 wallets in this lucrative transaction, dubbing them “insiders.” Their collective move involved the purchase of a staggering 24 million Ethereum WIF tokens, all acquired for a mere $3,000 in ether.

What adds intrigue to this narrative is the fact that this acquisition took place precisely in the same block where the deployer initiated trading. This hints at an uncanny awareness of when the tokens would be issued and consequently traded, a detail emphasized by Lookonchain.

The initial excitement and anticipation surrounding these tokens led to a rapid escalation in prices, witnessing a climb from fractions of a penny to a notable 30 cents. However, the elation was short-lived as concerns regarding ownership triggered a sharp market downturn, resulting in prices plummeting by more than 80% since Saturday.

It is a stark reminder of the inherent volatility in the crypto space, where market sentiments can shift swiftly and dramatically. Attributed as the issuer of Ethereum WIF tokens is a user identified as @issa, who claims to be the original creator of the dog wearing a pink hat meme back in 2019.

Issuer’s statement and market response

Amidst the unfolding developments, @issa took to social media to clarify the situation, stating, “I originally created the meme you all know as ‘dogwifhat.’ With so many of you reaching out to me and the $WIF team never acknowledging me as the original creator, I wanted to clarify that I have no affiliation with them and never owned or received any allocation.”

Interestingly, @issa’s indirect connection with Ethereum WIF tokens has sparked robust demand, translating into approximately $7.7 million in trading volumes over the past 24 hours. This involved just over 4,500 holders, according to data from DEXScreener.

The scenario raises questions and debates within crypto circles regarding which version of the WIF meme token holds the authenticity claim. This unfolding narrative serves as a poignant reminder of the dynamic and speculative nature of the crypto market.

Rapid price fluctuations and controversies surrounding token ownership can have profound effects on investors. Caution should be exercised, and thorough research is imperative, particularly when navigating meme-based tokens, which often carry additional layers of complexity and uncertainty. The recent series of events surrounding the Ethereum version of the meme coin “dogwifhat” exemplifies the crypto market’s inherent dynamism.

Investors should approach such situations with a discerning eye, acknowledging the potential risks and uncertainties that accompany these speculative endeavors. As the debates continue within crypto circles, the broader community remains vigilant, emphasizing the importance of due diligence in navigating the ever-evolving crypto landscape.