A cryptocurrency sniper recently experienced a major financial setback after investing 15,000 SOL ($1.9 million) to snipe 177.9 million $WATER tokens. Despite the large investment, the sniper only managed to sell the tokens for 9,306 SOL ($1.2 million), resulting in a loss of 5,694 SOL ($716,400) in less than 10 minutes.
This incident has prompted cautionary advice within the crypto community, highlighting the risks of sniping. Sniping involves buying tokens at launch to quickly sell them for a profit. However, not all snipers are successful, and those unfamiliar with the practice can suffer significant financial losses.
Adding to the controversy, there are allegations of insider dumping by the $WATER development team. It has been claimed that the developers sent a substantial supply of $WATER tokens to their wallets and dumped them on the market. One wallet, reportedly controlled by the development team, was sent 44 million $WATER tokens and currently holds 35 million.
Critics argue that such actions demonstrate the potential harm of presales for investors. These sales allow the development team and insiders to acquire and sell tokens before the broader community can participate, undermining trust and raising questions about the integrity of the $WATER project and its developers.
The crypto community is advised to exercise caution and conduct thorough due diligence before investing, especially in projects with presale structures that may favor insiders over regular investors. The recent events surrounding $WATER serve as a stark reminder of the potential risks in the volatile world of cryptocurrency.