A holder of Maker (MKR) tokens sold at a loss and moved into some of the hottest meme tokens. Instead of moving the assets to Sky, the whale chose SPX6900 (SPX) and MOG.
A former token millionaire in Maker (MKR) is switching to meme tokens. The known wallet shed all MKR tokens, instead of swapping them for the new SKY asset after Maker’s rebranding.
The known wallet singles out the whale as a selective token millionaire, based on Nansen’s data. The wallet was funded with ETH from Binance, then acquired SPX and MOG through Uniswap V2 and Orca.
The wallet shed all MKR holdings, instead buying SPX and MOG, while retaining ETH and USDT. The whale wallet is not among the largest 150 holders of SPX or MOG, though still building up a portfolio valued at more than $2.2M. In total, the profit from loading up on the two meme tokens is around $230K.
The tokens are more volatile and can lead to deep losses, though both assets are trending and still mentioned daily by meme influencer Murat Mahmudov. MOG has also drawn in the market maker Wintermute, engaging in high-velocity transactions with Bybit.
MKR phased out, price slides close to $1K
As MKR is phased out and there is no more demand to serve as collateral, the price has been unraveling for months. MKR is now at $1,192.20, threatening to get closer to $1K and into three-digit prices. In the past six months, MKR slid from a yearly peak of $3,934.36.
The whale sold MKR after losing more than $1M in value. The current portfolio is already erasing the losses, as SPX traded at $0.75. In the past few days, the whale acquired SPX at a cost basis of $0.67.
MOG is also moving near an all-time high, though it’s an extremely risky bet. MOG trades at $0.000002, with the potential to move by a factor of 10 or 100. The asset has already performed a 100X jump from its initial price at the end of 2023. MOG is now in a new price discovery stage, while being promoted as the next $1B meme token.
Both SPX and MOG compete to break the $1B valuation target, lining up among high-visibility memes. Despite the highly active meme token market, the $1B landmark is not easy. Yet more projects manage to move above $500M within the first weeks of active promotion. Memes have replaced altcoins as a source of speculative gains, while older tokens are still lagging behind Bitcoin (BTC). Even with a new peak in meme interest, the Altcoin Season Index is stagnant at 29 points.
Meme tokens are also expecting a super-cycle, where a small selection of tokens is seen as potentially surpassing other assets. Meme tokens, however, can also erase value quickly. At this point in the market, however, MKR and SKY are also facing downward pressures, while having small chances of a speculative upside.
Sky builds up value after collateral reorganization
During the process of switching to USDS and SKY from DAI and MKR, the residual vaults of Maker still holds more than $4.36B in value locked. MKR has a market cap just above $1.03B and may be considered undervalued, except for being phased out for SKY tokens.
SKY is still in a period of price discovery and is much more unstable. The asset trades near its lower range at $0.05, with still limited exchange listings.
Sky has already deployed a total of $100M USDS to Aave, becoming one of its main sources of passive income. Sky itself still carries crypto collaterals, RWA vaults, as well as other non-crypto collaterals. DAI is still active, though in the process of being swapped for USDS.
The conversion of MKR to SKY has been live for about a month, and around 8% of the tokens have been swapped. MKR itself is still traded and considered oversold, but open interest is near the low range for the past six months. Most of the available SKY is still in Uniswap V3 and V2, where it trades in ways similar to meme tokens while it gains more listings on tier 1 exchanges.
