New meme crypto suddenly extremely volatile during livestream
Launched on June 18 on the Solana network, Rizz initially caught the attention of crypto enthusiasts. However, the euphoria quickly gave way to disappointment when the crypto price dramatically collapsed during the live session on X.
The X Space featured several prominent figures from the crypto community, including Nicolas Vaiman, CEO of Bubblemaps. Vaiman asked critical questions about the so-called ‘bubbles’. These are clusters that show disproportionate holdings in a small number of accounts of a coin, data that can be viewed via the blockchain.
The founder of Rizz, known as “Rick”, reacted noticeably shocked to the sudden share price drop. Vaiman described the situation this way: “When the price collapsed, Rizz’s founder sounded emotional, and I felt uncomfortable asking questions. At one point I even thought he might be crying.”
The extreme price drop was mainly caused by early ‘snipers’. These are traders who managed to obtain large amounts of tokens in the first minutes after the launch. This phenomenon is not unusual in memecoin launches and can lead to extreme price fluctuations, especially when negative facts emerge as in this case.
Rumors are swirling that “Rick” may not be Rizz’s actual leader. Speaking to Cointelegraph, Vaiman suggests that a group of developers from Singapore, known for creating and ‘rugpulling’ memecoins, could be the real driving force behind the project.
Meme crypto such as dogecoin, shiba inu and PEPE are known to be volatile. This category of crypto is therefore seen as the riskiest category among many investors. Meme crypto, of which most of the stock is owned, poses the greatest risk here.
The Rizz team admitted to controlling more than 80 percent of the total token supply, raising questions about the decentralization and fair distribution of the project. It was after Vaiman’s questions that the RIZZ price suddenly started to fall sharply.