A crypto investor recently experienced a major financial setback after putting 15,000 SOL ($1.9 million) into sniping 177.9 million $WATER tokens. Despite the large investment, the investor 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 led to warnings within the crypto community about the risks of sniping. Sniping involves buying tokens at launch to quickly sell them for a profit. However, not all snipers make money, and those unfamiliar with the practice can suffer significant financial losses.
Additionally, there are allegations of insider dumping by the $WATER development team. It is claimed that the developers sent a large supply of $WATER tokens to their wallets and then sold them on the market. One particular wallet, supposedly controlled by the development team, was sent 44 million $WATER tokens and currently holds 35 million.
Critics argue that such actions demonstrate the potential dangers of presales for investors. Presales allow the development team and insiders to secure and sell tokens before the wider community can participate, undermining trust and raising questions about the integrity of the $WATER project and its developers.
The crypto community is advised to approach investments in projects with presale structures cautiously and to conduct thorough due diligence. The recent events surrounding $WATER serve as a stark reminder of the potential risks in the volatile world of cryptocurrency.