The Will Smith Inu (WSI) coin retraced 80% from its peak in around 36 hours. Is this the latest crypto pump and dump, or rug pull scam?
Over 50% of the dump took place in the last 24 hours. The meme token – a crypto coin with no apparent utility or use case, only that internet memes are funny – reached an all-time high (ATH) of just under $ 0.0000045 on March 30th.
$ WSI has now corrected approximately 80%, giving back most of its gains. The Will Smith Inu price now is $ 0.0000008 – adding an extra zero. A real slap in the face for anyone who bought the top.
Will Smith Inu Price Chart
On the pump up, Will Smith Inu made 100x gains overnight, a 10,000% bull run.
It happened so fast Coinmarketcap didn’t recognise Will Smith Inu as a new crypto coin and plot its price chart until half of the pump had already taken place.
WSI price chart via Coinmarketcap
The Will Smith Inu price chart above shows a 58x gain from the start of its charting history to its peak.
As we warned in our post about the Will Smith NFTs on Opensea however, high percentage gains like that can simply be a sign of low liquidity on the crypto exchanges meme tokens often launch on – in this case Uniswap.
In other words there were no sellers, so price pumping didn’t really represent a large amount of buyers and investor interest, and it could potentially crash just as fast as it rallied – it built no support on the way up and very few buyers actually had limit orders set to catch it on the way down.
Meme Token Risks
Crypto projects can hire market maker teams to ‘pump and dump’ tokens in this way, especially meme tokens that have no intrinsic value (they don’t do anything or solve any problem in finance).
The Will Smith Inu token is being compared to a ‘rug pull’ scam, where inexperienced buyers thinking it was the next Shiba Inu or Dogecoin buy in at a high valuation then have the rug pulled out from underneath them. Similar to the Squid Games crypto.
Some rug pull warning signs were the poorly written language on the WillSmithInu.io website, small following on socials, started target of 10000x and high total supply of 1,000,000,000,000 coins.
Yahoo Finance warned that anyone can quickly create an ERC-20 token on a decentralized exchange (DEX) in minutes, with no inherent value, and use wash trading and other manipulation to make the price chart look bullish or go parabolic.
We recommend only buying meme coins at low prices and setting take profit orders in advance if you do attempt to day trade them in the short-term for quick gains. Don’t chase pumps or FOMO into big green candles.
Investing in meme crypto projects over the long-term is risky, more so than simply holding BTC or the ETH buyers would have swapped for WSI on Uniswap exchange.
Stick to tokens with a real-world use case as a better long-term crypto investment.
Cryptoassets are a highly volatile unregulated investment product.