The AI-themed memecoin Ralph Coin (RALPH) lost 80% of its value after a developer sold a $245,000 stake into thin liquidity. The sell-off triggered a devastating four-hour crash, erasing tens of millions in market capitalization and sparking significant community backlash.
Ralph Coin plummeted 80% in a single four-hour trading session. Lookonchain reported a developer sold 7.68 million RALPH tokens for 1,888 Solana, valued at approximately $245,000.
This massive sale into thin liquidity caused the coin’s market cap to collapse from around $50 million to roughly $5 million. Data from Bubblemaps later showed the token was down 97% from the initial selling event.
The memecoin is linked to the “Ralph Wiggum” AI prompting technique, which loops instructions until completion. The RALPH token was later created by the community, with 99% of royalties destined for creator Geoffrey Huntley after a vesting schedule.
The developer, who received the tokens for free, stated on social media he felt the need to “de-risk” his position. He claimed that “moments like this will test the paperhands from the diamond hands.”
This action drew sharp criticism from parts of the community. Others pointed out the developer did not create the token and did not ask to be given it.
Lookonchain also reported a newly created wallet spent $470,000 to purchase RALPH just hours before the crash. That wallet was later forced to sell its 10.19 million RALPH stash at a $355,000 loss.
