The Solana-based memecoin White Whale suffered a sharp sell-off on Monday, with its price plunging by as much as 60% after its largest private holder offloaded most of their position. On-chain data shows the sale totaled roughly $1.3 million, triggering a cascade of sell orders in an already thin market and sparking fresh “rug pull” accusations on X.
The move briefly wiped out a significant portion of the token’s market value before prices stabilized slightly. During early European trading hours, liquidity in the main trading pair hovered just above $900,000, far too shallow to absorb large sell orders without severe price impact.
Low Liquidity, High Vulnerability
The episode once again highlights the structural risks of smaller memecoins. With limited market depth, these tokens are highly sensitive to whale activity. When a large holder decides to sell, prices can collapse within minutes, leaving retail investors exposed and unable to react in time.
Blockchain data points to wallet 6kasXu, an early buyer of White Whale, as a key participant. This wallet received tokens from the deployer address CZFDnH, which accumulated around 45 million tokens after taking over control (CTO). Within a short time window, both wallets sold tokens worth approximately $1.3 million, setting off the sharp downturn.
Project Calls It a “Liquidity Event”
The White Whale team responded on X, rejecting claims of a coordinated exit or misuse of funds. They described the sell-off as a “liquidity event” rather than a team-driven action, while confirming that they executed several buybacks during the decline to help cushion the impact.
According to the statement, the departure of a large holder represents a shift in token distribution. The team argues that the market is no longer overhung by a single dominant position and that supply is now spread across a broader holder base, which could reduce future volatility.
Partial Recovery, Speculation Persists
By early Tuesday, White Whale had recovered part of its losses, trading around $0.040 with a market capitalization close to $40 million. Twenty-four-hour trading volume stood at roughly $12 million, indicating that speculative interest remained strong despite the turmoil.
White Whale launched about three months ago via Pump.fun and is themed around the online persona @TheWhiteWhaleV2, a popular crypto trader on X. While that association helped the token gain rapid visibility, it also amplified sensitivity to large holder movements.
The White Whale incident serves as another reminder that in low-liquidity memecoins, a single whale transaction can reshape the entire market narrative in a matter of minutes.
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