Fear of Missing Out Causes Crypto Trader to Lose 6,039 Solana Tokens
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In the quest for sizable returns, cryptocurrency traders are always on the lookout for the next promising project. Despite their efforts, not every investment turns into a windfall.
A Lookonchain report recently unveiled that a trader incurred a loss exceeding $1 million in just a span of three days.
The Highs of Buying and the Lows of Selling
The blockchain analytics tool Lookonchain reported a crypto trader’s loss of 6,039 SOL within three days after they made a FOMO-induced purchase of a memecoin. This individual acquired SLERF tokens at 4,958 SOL, equivalent to roughly $1 million at the time.
These transactions were executed when SLERF was priced between $0.8 and $1.4 on its debut day. Shortly thereafter, the trader offloaded their holdings at a steep loss, parting with their SLERF tokens at a loss of 2,793 SOL, thus losing about $564,000 as the price sank to between $0.4 and $0.6.
The fear of missing out prompted the trader to make a second purchase of SLERF as its price neared the all-time high (ATH) of $1.30. Acquiring 3 million Slerf at $1.17, they expended 19,133 SOL (valued at approximately $3.152 million).
It remained uncertain if the trader would turn a profit from this subsequent investment. However, Lookonchain disclosed that the same FOMO-driven buyer encountered another loss, surrendering 6,039 SOL, amounting to a $1.15 million loss.
With its rollercoaster inception, the Slerf token attracted substantial media attention. It experienced a precipitous 52.39% fall from its ATH witnessed the following day. At the time of writing, SLERF’s value had dipped to $0.6351, down 18.4% within the last 24 hours.
Another instance saw a different trader losing 3,731 SOL, which translates to about $775,000, only an hour after purchasing 790,236 SLERF at its peak price. They continued to invest in an additional 650,000 SLERF even as prices tumbled after their purchase.
FOMO and the Crypto Presale Culture
Expanding the narrative further, a different trader parted with money after investing in another memecoin associated with the ‘presale meta.’ While this loss was comparatively smaller, the trader parted with 371 SOL on SMOLE and then with 2,549 SOL on SLERF.
After only one day on the market, SMOLE has been heavily criticized and its value decreased by 17.1%. Currently, this memecoin is being traded at $0.0001499, a significant drop of 70.39% from its highest quoted price of $0.0005086.
These incidents imply that memecoin trading strategies during presales are largely FOMO-driven. There’s been an outflux of hundreds of millions of dollars into such tokens, with numerous reports detailing unfortunate losses for investors.
While there are seasoned investors who capitalize on these trends for profit, the general sentiment suggests that a sizeable segment of traders are incurring substantial losses in their pursuit of the next skyrocketing memecoin, even absent a solid foundational strategy.
Chart Source: SOLUSDT on TradingView.com
Image featured on Unsplash, chart courtesy of TradingView.
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