Benzinga - A trader has reportedly suffered a significant loss of 3,731 SOL, equivalent to $775,000, within a span of an hour due to FOMO (Fear Of Missing Out) buying.
What Happened: According to a tweet posted on Tuesday, the trader spent 5,004 SOL to acquire 790,236 SLERF at its highest price point of $1.32.
After the price of SLERF plummeted, the trader further invested 2,500 SOL ($517,000) to purchase 650,330 SLERF at $0.80 during a price rebound. However, the price of SLERF experienced another drop following his purchase and the trader eventually offloaded all 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 prior day due to FOMO buying of SLERF with 4,958 SOL ($1million).
Despite the substantial losses, the trader persisted, bought another 3 million SLERF at $1.17 for 19,133 SOL ($3.52 million). Whether his latest trade will lead to further losses or a potential profit has yet to be seen.
Slerf went viral in the crypto community due to its developer accidentally destroying $10 million in creating the meme coin.
Also Read: Why Can’t Dogecoin And Shiba Inu Keep Up With Other Meme Coins?
Why It Matters: This incident underscores the risks associated with FOMO buying, which can lead to significant financial losses. It serves as a reminder for investors to exercise caution and conduct thorough research before making investment decisions, particularly in highly volatile markets.
Cautioning investors, full-time crypto and stock trader Blockchainedbb stated in his latest tweet, “Don’t give in to emotions and buy some shitty meme coins. Hate to break it to you, but crypto is not a get-rich-quick scheme.”
According to CoinGecko data, the meme coin market capitalization fell by 15.8% in the past 24 hours to $48.58 billion.
The top three memecoins — Dogecoin (CRYPTO: DOGE), Shiba Inu (CRYPTO: SHIB) and Pepe (CRYPTO: PEPE) — are all experiencing losses of around 10% over the past 24 hours, while the trending meme coins Dogwifhat (CRYPTO: WIF), Floki (CRYPTO: FLOKI) and Bonk (CRYPTO: BONK) are all trading at losses between 15-20%.
With the two-day Fed meeting and an overall downward trend in crypto markets, the sentiment is shaky for the crypto king and meme coins. The upcoming trend will be interesting to observe amidst an expected Bitcoin price correction.
Read Next: Crypto Carnage: Bitcoin’s Slide Below $69,000 Triggers Massive $700 Million Liquidation
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.