The latest meme coin sensation Mu Deng (Muodeng), based on the Thai pygmy hippo star of the same name, has started to go viral. Yet, holders of big-time tokens are still hoping for a rebound.
After reaching a peak market capitalization of $322.7 million on September 28, Moodeng fell 50% to $0.18 in three days, a 26% drop in just the last 24 hours.
An early buyer known by his wallet address as “Trader Db3P” bought $800 worth of Moodeng on September 10 – the day it launched.
A little over two weeks later, that investment topped $10 million. Even though the token's price has been dropping recently, even the trader seems to be holding firm as the coin drops roughly $1 million every day. His holdings are now half worth, still more than $5 million.
So why doesn't he spend money while he can?
Moodeng price in the last seven days. Credit: CoinGecko
The coin's rapid rise and subsequent crash are a perfect example of a fundamental issue in the memecoin space.
With Moodeng's relatively small market cap, at $176.1 million, holders of large wallets holding large amounts of the token face a challenge: all eyes are on the trader Db3P wallet.
When he tries to sell his holdings, he may experience a more severe crash, making it impossible to exit without causing market chaos.
Liquidity problems often exacerbate volatility. Memcoins are particularly prone to large price fluctuations due to their small market sizes and speculative nature.
For Moodeng, major shareholders control a large portion of the supply, which means that even one large sale can significantly affect the price.
As a result, whales prefer to stay in position while watching the market or spending in small groups for long periods of time.
How to invest millions in nothing
Moodeng's meteoric rise began on September 19 when a baby hippo at Thailand's Khao Kheow Open Zoo became an internet sensation. Millions of views later, the Solana-based token launched on Pamp.fun two weeks ago suddenly found itself in the limelight.
On September 24, Moodeng's market cap hit $70 million, surpassing other meme coins on the platform. Her Twitter following grew to 39,000 followers, which exceeded the number of actual token holders.
Still, the token's price continues to rise, rising 34% in a single day on September 26. That 597% weekly gain pushed Moodeng into the Pump.fun stack and raised its market cap to $265 million.
For another completely useless coin.
Modeng was not alone in this frustration. Just like Dogwhiphat and Pepe did a few months ago and Shiba Inu a few years ago, this little coin pushed other tokens, from OG meme coins like Dogecoin to Iggy Azalea's Mom Token and the Trump-inspired MAGA Coin.
September 27 saw another 50% increase for Moo Deng, the token reaching an all-time high of $0.41. That's when our mystery trader turned his $800 bet into a theoretical value of $10 million — and the day the token began sliding toward its current value.
In the midst of this meme coin mania, some voices have raised concerns. An anonymous Moodeng whale insider faces trading allegations. Critics have pointed to the token's high profitability and questioned the timing of the initial investment.
But is this really a case of insider trading? Who knows at this point? Most of these success stories (at least the legit ones) come from meme coin hunters – people waiting and buying every crappy sign that appears, every airdrop, all the time. And sometimes they get lucky.
For example, one Moo Deng merchant turned $7,000 of MooDeng into $1 million after cashing out within two weeks of their first purchase. According to blockchain data, the merchant now has 250 tokens left.
This kind of decentralized lottery might make some sense for people willing to lose their money on the next meme coin sensation. But the rest of us are better off investing in a ticket to Thailand to see the real baby hippos.
Edited by Sebastian Sinclair.
Daily Debrief Newspaper
Start every day with top news stories, plus original features, podcasts, videos and more.
