Whale bets $12 million with 10x leverage on FARTCOIN and PUMP: How crazy is the meme coin speculation frenzy

A trader monitored by Lookonchain shows that approximately 2 hours ago, a massive leveraged long position was opened: 19.75 million FARTCOIN (worth $7.76 million) plus 2 billion PUMP (worth $4.77 million), with a total position value exceeding $12 million, all using 10x leverage. This operation reflects the rapidly increasing speculative heat in the meme coin market, but also exposes extremely high risks.

Trader’s High-Risk Gamble

Position Size and Structure

This trader’s operation size is considered medium-large among recent whale activities. According to monitoring data comparison:

The risk of this operation lies in: firstly, the huge amount involved; secondly, the high leverage (10x means a 10% price drop triggers liquidation); thirdly, concentration on two highly volatile meme coins.

Market Status of FARTCOIN

FARTCOIN is a meme coin in the Solana ecosystem, launched in October 2024. According to latest data:

• Current price: $0.391808
• Market cap rank: #113
• 24-hour decline: 1.80%
• 7-day increase: 17.35%
• Market cap: $391.81 million
• 24-hour trading volume: $97.48 million

Price trend shows that although there has been a good increase over 7 days, recent pullback pressure exists. The trader’s decision to establish a high-leverage long position at this point is a bet on a rebound.

Market Heat vs. Liquidation Risk

Multiple Whales Participating in the Same Sector

Recent reports indicate that several whales have been simultaneously long on FARTCOIN and PUMP over the past week, reflecting high market enthusiasm for these two tokens. However, this concentrated high-leverage activity also introduces chain risks.

Monitoring data shows:

• The “Loyal Bull” long on FARTCOIN at 10x leverage has an unrealized loss of $448,000
• 0x10a whale’s BTC long has been fully liquidated, losing $1.69 million; FARTCOIN and PUMP longs also partially liquidated
• Some whales, after previous liquidations, were forced to close other positions

This indicates that while market enthusiasm is high, the risks of high leverage are rapidly accumulating.

Why Do These Tokens Attract High Leverage?

Based on recent news flashes, the main reasons FARTCOIN and PUMP are targets for whale high-leverage trades are:

• Market speculation sentiment is soaring, meme coins becoming new hotspots
• The tokens are highly volatile, offering substantial profit potential with high leverage
• The Solana ecosystem remains hot, benefiting related tokens
• Concepts like pre-sales and whitelists are being hyped to boost market activity

However, these factors also mean that the prices of these tokens are more susceptible to emotional swings, and high-leverage trading can more easily trigger liquidations.

Risk Signals and Market Warnings

Chain Reaction of Liquidations

A noteworthy phenomenon in recent reports is that multiple whales have been liquidated due to high-leverage longs, forcing them to close other positions. This chain reaction could further amplify market volatility.

Personal Viewpoint

This $12 million, 10x leverage operation, while large in scale, is fundamentally a high-risk speculative move. Market enthusiasm does not equate to low risk; in fact, it often indicates risk accumulation. The fact that multiple whales have already been liquidated underscores that the risks in this sector are quite evident.

Summary

This $12 million, 10x leveraged long position reflects the current surge in meme coin market speculation, but also exposes rapid risk accumulation. While we do not know this trader’s specific strategy or risk tolerance, the fact that multiple whales have already been liquidated shows that high-leverage trading in this sector carries significant risk.

For market participants, it is crucial to recognize that high market enthusiasm does not mean low risk; it may actually mean risks are quickly building up. Especially with high leverage, a market correction can trigger chain liquidations, further increasing volatility. Future focus should be on how this long position performs amid market fluctuations and whether it will become the next liquidation case.