DOGS Meme Coin Spikes Following Airdrop and Exchange Listings, But Pump-and-Dump Fears Loom

DOGS, the newest memecoin based on the Ton blockchain, has quickly become a focal point of market activity following its airdrop and subsequent exchange listings.

DOGS, the latest memecoin on the Ton blockchain, has become a hot topic following its airdrop and exchange listings. But as the token soared, hitting a new all-time high, fears of a pump-and-dump scheme emerged.

Chart: TradingView.com

The pump-and-dump concerns stem from the vast holdings of centralized exchanges (CEXs) in the DOGS token. According to a tweet from crypto commentator LeonidasNFT, CEXs hold 8.5% of the token’s supply, valued at about $60 million, with no lockup period.

This raises the possibility that CEXs could inflate the token’s price by buying up large quantities and then later sell off their holdings, leaving retail investors at a disadvantage. Moreover, the large volume of tokens held by these exchanges could trigger a wave of panic in the event of a sell-off.

Seeing the risk of an impending downturn, early holders might decide to sell their tokens to lock in profits while they can, which would only add to the selling pressure.

The scenario is especially concerning in the context of new tokens like the memecoin, which tend to experience high volatility and are more susceptible to manipulation. The potential for profit-taking by CEXs adds another layer of risk that could lead to a significant drop in the token’s price.

Adding to the concerns is the lack of clear communication from the DOGS development team, which has left investors in the dark about the token’s long-term prospects. Without transparency or a solid roadmap, investors are left guessing, which could create hesitation and make it harder for the token to sustain its recent gains.

Despite the initial hype, these factors could cast a long shadow over the future of the token and might have investors proceeding with caution as these issues could increase volatility and potential losses in the near term.

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