One trader reportedly suffered a significant loss of 3,731 SOL, equivalent to $775,000, in the span of one hour due to FOMO (Fear Of Missing Out) buying.
What happened: According to tweet published on Tuesday, the trader spent 5,004 SOL to acquire 790,236 SLERF at the highest price of $1.32.
After the price of SLERF collapsed, the trader further invested 2,500 SOL ($517,000) to buy 650,330 SLERF at $0.80 during a price rebound. However, the price of SLERF took another dip following his purchase, and the trader eventually sold all of his SLERF for 3,774 SOL, worth $784,000.
This translates to a loss of 3,731 SOL or $775,000.
Another trader experienced a similar fate, losing 2,793 SOL ($564,000) the day before due to FOMO buying SLERF with 4,958 SOL ($1 million).
Despite substantial losses, the trader persisted and purchased another 3 million SLERF at $1.17 for 19,133 SOL ($3.52 million). Whether its latest trade will lead to further losses or a potential profit is yet to be seen.
Slerf went viral in the crypto community because its developer accidentally destroyed $10 million while creating the meme coin.
Read also: Why Dogecoin and Shiba Inu can’t keep up with other meme coins?
Because matter: This incident highlights the risks associated with FOMO buying, which can lead to significant financial losses. It serves as a reminder to investors to exercise caution and conduct thorough research before making investment decisions, particularly in highly volatile markets.
Warning investors, Blockchainedbb, a full-time cryptocurrency and stock trader, said in its latest article tweet, “Don’t give in to emotions and buy shitty meme coins. I hate to break it to you, but cryptocurrencies are not a get rich quick scheme.
According to data from CoinGecko, the market capitalization of meme coins fell 15.8% in the last 24 hours to $48.58 billion.
The first three memecoins: Dogemoneta DOGE/USD, Shiba Inu SHIB/USD AND Pepper PEPPER/USD – are all suffering losses of around 10% in the last 24 hours, while trending meme coins Dogwifat WIF/USD, Floki FLOKI/USD AND Good BONK/USD they are all trading at losses of between 15 and 20%.
With the Fed’s two-day meeting and an overall bearish trend in cryptocurrency markets, sentiment is shaky for the king of cryptocurrencies and meme coins. It will be interesting to watch the upcoming trend in the context of an expected Bitcoin price correction.
Read next: Crypto Carnage: Bitcoin Slip Below $69,000 Triggers Massive $700 Million Liquidation
Image created using artificial intelligence with Midjourney.