Cryptocurrency traders are constantly looking for the next big project to generate significant profits. However, not all of your investments result in massive gains.
A recent report from Lookonchain revealed that a trader lost more than $1 million in three days.
When buying high does not result in selling higher
According to blockchain research platform Lookonchain, a crypto trader lost 6,039 SOL in the last three days after buying FOMO memecoin. According to the report, the trader purchased Slerf (SLERF) for 4,958 SOL, worth around $1 million.
The different transactions occurred when the price fluctuated between US$0.8 and US$1.4 on the launch day. A few hours later, the trader sold his SLERF tokens, losing 2,793 SOL after the token price fell to the $0.4 to $0.6 range for a loss of $564,000.
That #FOMO buyer sold everything $SLERF with a loss of 6,039 $SUN($1.15 million) again.
So he deposited all his $SOL for #Binance and can no longer negotiate #MEMEmoedas.https://t.co/ubHQwYoM54 pic.twitter.com/RIJkDF103C
– Lookonchain (@lookonchain) March 21, 2024
Apparently, fear of missing out made the trader buy SLERF a second time when the price approached its all-time high (ATH) of $1.30. The address purchased 3 million Slerf for $1.17, spending 19,133 SOL, worth about $3.152 million.
At the time, the outstanding question was whether the trader would profit from this second attempt or lose more money. As reported by Lookonchain, the FOMO buyer sold all of his SLERF tokens at a loss again, losing 6,039 SOL, worth $1.15 million.
The Slerf token, which has been in the news for its dramatic release, saw a significant price drop of 52.39% from the ATH recorded the day after launch. At the time of writing, SLERF is trading at $0.6351, down 18.4% in the last 24 hours.
oh, fuck#Slerf #Slerfthesloth #slerfsup $slerf pic.twitter.com/MZes6fVjHN
– Slerf (@Slerfsol) March 22, 2024
A second trader lost 3,731 SOL, worth $775,000, just one hour after purchasing 790,236 SLERF at ATH price. The trader then doubled his bet and purchased another 650,000 SLERF. Unfortunately, the token’s price plummeted after both purchases.
Is crypto pre-sale target hand in hand with FOMO?
To paint an even bigger picture, another crypto trader lost money yesterday after purchasing a different “presale” memecoin. Although the numbers are more modest than the other two cases, this trader bought SMOLE and lost 371 SOL. The address subsequently spent 2,549 SOL to purchase SLERF.
This guy always buys high and sells low.
He lost money in $SMOLE twice in just 20 minutes, for a total loss of 371 $SOL($70 thousand).
So he spent all 2,549 $SOL($484K) to buy $SLERF.https://t.co/X4aRpNrZuC pic.twitter.com/oZlWkyKD8B
– Lookonchain (@lookonchain) March 21, 2024
SMOLE, despite only being away for a day, has already seen massive criticism and a price drop of 17.1%. At the time of writing, memecoin is trading at $0.0001499, down 70.39% from its all-time high price of $0.0005086.
As this might suggest, FOMO drives memecoin traders’ decisions during this pre-sale target. The trend saw hundreds of millions of dollars sent to memecoinsmost of which report losses of millions to investors.
2024 is a #FOMO #YOLO type of year
Go ahead ! pic.twitter.com/AT8iMZchdQ
-Crypto Damus (@AstroCryptoGuru) March 20, 2024
Although traders have had experience of being able to profit From this trend, current numbers suggest that a considerable amount of traders lose huge numbers as they try to catch the next memecoin to go “turbo parabolic”, even if it does not have a long-term roadmap.
SOL is trading at $172.25 in the 1-day chart. Source: SOLUSDT on Trading.view.com
Featured image from Unsplash.com, chart from TradingView.com
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