Elon Musk-led Meme Coin Drops 58%: The Reason Is Clear

The meme coin Troll recently experienced a sharp decline in value, plummeting 58%. that much fallen The price of TROLL may be driven by a series of large transactions and sales by large holders.

One particular wallet, identified as 0xa7a0, acquired trillions of TROLL tokens in five separate transactions, establishing itself as one of the top holders of the memetic digital asset. The strategy of accumulating large quantities of tokens with ostensibly low value is speculative at best.

It can be inferred that investors are using “spray and pray” tactics, a high-risk investment method where they purchase a variety of assets with the hope of receiving significant returns.

Conversely, another holder, known with address 0x97b8, decided to invest in TROLL six months before the pump and weathered the swings of bullish and bearish market conditions. This decision brought his portfolio to about $1.2 million and realized some gains that may have contributed to the most recent TROLL crash.

Despite the impressive paper value of these holdings, the reality is sobering due to TROLL’s poor liquidity. It is highly unlikely that these investors will be able to liquidate even half of the stated value without incurring further devaluation of the token.

The catastrophic decline in TROLL market prices can reasonably be attributed to significant profit taking by these key accounts, contributing to a devaluation of nearly 60%.

Although Musk once joked that he was X’s “chief troll officer,” he has no real connection to the TROLL token and has never endorsed it. The assumption that Musk’s comments have a direct impact on TROLL’s market behavior is unfounded.