Dogwifhat Trader Faces $5.7 Million Slippage Loss in Unlucky $9 Million WIF Purchase

Published: Jan 11, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

An unlucky trader recently bought nearly $9 million worth of dogwifhat (WIF), a viral meme coin on the Solana blockchain. This purchase was executed through three transactions totaling $6.25 million, $1.78 million, and $893,000. The move ended the trader with a slippage loss of over $5.7 million.

Blockchain data linked to the Solana wallet address “5qYuZ9ZLShLB1MuV83xHRcTgVA9A5pUajnQUUcPbk3bf” revealed the gravity of the situation. The buyer incurred substantial losses as the price of dogwifhat skyrocketed to $3 immediately. However, the joy was short-lived as the prices swiftly tumbled back to 15 cents, closely mirroring the pre-purchase levels.

The term ‘slippage’ came into play, referring to the disparity between the expected and actual trade prices. In this instance, the ambitious trader faced an unexpected slippage loss of over $5.7 million.

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WIF Surges 150% In 24 hours

According to CoinMarketCap data, WIF experienced a 24-hour low of $0.1123 and a high of $0.316. WIF is currently trading at $0.2923, reflecting a remarkable 145.95% increase in the past day. Dexscreener data shows a 24-hour trading volume of $53.5 million for WIF, indicating significant market activity and investor interest.

Source: Dexscreener

Lookonchain, a cryptocurrency analytics firm, highlighted the unfortunate WIF trading activity in a tweet. They noted how the self-proclaimed “binance insider” whale had previously spent over $225,000 buying nearly 20 million WIF coins at an average cost basis of 24 cents. 

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This unfortunate episode serves as an expensive reminder of the significant risks involved with trading small-cap, low-liquidity cryptocurrencies. Even large, sophisticated traders can misjudge execution pricing and lose millions due to extreme slippage when market depth is insufficient to support the trade sizes attempted.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.