USDP Memecoin Crashes 99% After Insider Dump, Onchain Data Reveals

USDP, a Solana-based memecoin, shot up to a $150 million market cap on Wednesday, only to crash by 99% within hours, wiping out nearly all of its value.

At its peak, early traders scored huge wins. One wallet turned a $300 buy into $300,000, a stunning 1,000x return. But for most retail investors, it was a different story; many are now left holding near-worthless tokens.

Onchain Data Exposes Insider Manipulation

According to data from Dexscreener, the crash wasn’t random. It was triggered by a network of interconnected wallets, most of them likely tied to project insiders.

These wallets began unloading their tokens shortly after USDP’s initial surge, causing a cascade of sales that drained the liquidity and sent the price into a tailspin. The wallets had been seeded in advance, and their behavior strongly suggests pre-planned coordination to extract profits before retail investors could react.

Bundling: The Insider Playbook

This strategy isn’t new. Known as “bundling,” insiders quietly pre-load wallets with large amounts of a new memecoin either through stealth allocations or creative on-chain tricks that hide the transfers.

These wallets don’t buy tokens like the public does. They receive them for free and simply wait for the hype to build. As new buyers rush in and prices spike, insiders sell into the frenzy. The result? A short-lived pump followed by a brutal dump.

Also Read: How to Spot a Rugpull Before It Happens?

Because these insiders hold most of the supply, the memecoin price can rise quickly on minimal demand. But when the exit comes, it’s often devastating for unsuspecting traders.

Even Melania Trump’s recent memecoin launch showed signs of bundling, with 24 wallets acquiring tokens without any buy transactions.

Final Thoughts

The USDP crash is a stark reminder of the risks in meme investing—especially in projects lacking transparency. While the upside can be tempting, early surges are often driven by insiders looking to exit at the peak, leaving everyday investors with the losses.

As memecoins continue to explode in popularity, DYOR (Do Your Own Research) isn’t just advice it’s a survival tactic.