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Cryptocurrency traders constantly look for the next big project to yield significant profits. However, not all of their investments result in massive gains.
A recent report by Lookonchain revealed that a trader lost more than $1 million within three days.
When Buying High Doesn’t Result In Selling Higher
According to the blockchain research platform Lookonchain, a crypto trader lost 6,039 SOL over the last three days after FOMO-buying a memecoin. Per the report, the trader bought Slerf (SLERF) for 4,958 SOL, worth around $1 million.
The different transactions occurred when the price hovered between $0.8 and $1.4 on its launch day. A couple of hours later, the trader sold its SLERF tokens, losing 2,793 SOL after the token’s price plunged to the $0.4-$0.6 range, for a loss of $564,000.
This #FOMO buyer sold all $SLERF at a loss of 6,039 $SOL($1.15M) again.
Then he deposited all his $SOL to #Binance and may no longer trade #MEMEcoins.https://t.co/ubHQwYoM54 pic.twitter.com/RIJkDF103C
— Lookonchain (@lookonchain) March 21, 2024
Seemingly, the fear of missing out made the trader buy SLERF a second time when the price neared its all-time high (ATH) of $1.30. The address bought 3 million Slerf at $1.17, spending 19,133 SOL, worth around $3.152 million.
At the time, the pending question was whether the trader would profit from this second attempt or lose more money. As Lookonchain reported, the FOMO buyer sold all their SLERF tokens at a loss again, losing 6,039 SOL, worth $1.15 million.
The Slerf token, which has been all over the news for its dramatic launch, saw a significant price decrease of 52.39% from the ATH registered the day after launch. At writing time, SLERF is trading at $0.6351, an 18.4% decrease in the past 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 buying 790,236 SLERF at its ATH price. The trader then doubled down on its bet and bought another 650,000 SLERF. Unluckily, the token’s price plummeted after both purchases.
Is The Crypto Presale Meta Hand In Hand With FOMO?
To paint an even bigger picture, another crypto trader lost money yesterday after buying a different ‘presale meta’ memecoin. Although the figures are more modest than the other two cases, this trader bought SMOLE and lost 371 SOL. Later, the address spent 2,549 SOL to buy SLERF.
This guy always buys high and sells low.
He lost money on $SMOLE twice in just 20 minutes, with a total loss of 371 $SOL($70K).
Then 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 out for one day, has already seen massive criticism and a 17.1% price drop. At writing time, the memecoin is changing hands at $0.0001499, a 70.39% decrease from its highest price of $0.0005086.
As this might suggest, FOMO seemingly drives memecoin traders’ decisions during this presale meta. The trend has seen hundreds of millions of dollars sent to memecoins, most of which report millions in losses for investors.
2024 is a #FOMO #YOLO kind of year
go for it ! pic.twitter.com/AT8iMZchdQ
— Crypto Damus (@AstroCryptoGuru) March 20, 2024
Despite experienced traders being able to profit from this trend, the current numbers hint at a considerable amount of traders losing massive figures while trying to catch the next memecoin to go “turbo parabolic,” even if it doesn’t have a long-term roadmap.
Featured Image from Unsplash.com, Chart from TradingView.com
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