Cryptocurrency merchants always search for the subsequent massive challenge to yield important earnings. Nonetheless, not all of their investments lead to large positive aspects.
A latest report by Lookonchain revealed {that a} dealer misplaced greater than $1 million inside three days.
When Shopping for Excessive Doesn’t End result In Promoting Increased
Based on the blockchain analysis platform Lookonchain, a crypto dealer misplaced 6,039 SOL over the past three days after FOMO-buying a memecoin. Per the report, the dealer purchased Slerf (SLERF) for 4,958 SOL, value round $1 million.
The completely different transactions occurred when the worth hovered between $0.8 and $1.4 on its launch day. A few hours later, the dealer offered its SLERF tokens, dropping 2,793 SOL after the token’s worth plunged to the $0.4-$0.6 vary, for a lack of $564,000.
This #FOMO purchaser offered all $SLERF at a lack of 6,039 $SOL($1.15M) once more.
Then he deposited all his $SOL to #Binance and will now not commerce #MEMEcoins.https://t.co/ubHQwYoM54 pic.twitter.com/RIJkDF103C
— Lookonchain (@lookonchain) March 21, 2024
Seemingly, the worry of lacking out made the dealer purchase SLERF a second time when the worth neared its all-time excessive (ATH) of $1.30. The tackle purchased 3 million Slerf at $1.17, spending 19,133 SOL, value round $3.152 million.
On the time, the pending query was whether or not the dealer would revenue from this second try or lose extra money. As Lookonchain reported, the FOMO purchaser offered all their SLERF tokens at a loss once more, dropping 6,039 SOL, value $1.15 million.
The Slerf token, which has been everywhere in the information for its dramatic launch, noticed a big worth lower of 52.39% from the ATH registered the day after launch. At writing time, SLERF is buying and selling at $0.6351, an 18.4% lower up to now 24 hours.
oh fuck#Slerf #Slerfthesloth #slerfsup $slerf pic.twitter.com/MZes6fVjHN
— Slerf (@Slerfsol) March 22, 2024
A second dealer misplaced 3,731 SOL, value $775,000, only one hour after shopping for 790,236 SLERF at its ATH worth. The dealer then doubled down on its wager and acquired one other 650,000 SLERF. Unluckily, the token’s worth plummeted after each purchases.
Is The Crypto Presale Meta Hand In Hand With FOMO?
To color a good greater image, one other crypto dealer misplaced cash yesterday after shopping for a special ‘presale meta’ memecoin. Though the figures are extra modest than the opposite two instances, this dealer purchased SMOLE and misplaced 371 SOL. Later, the tackle spent 2,549 SOL to purchase SLERF.
This man at all times buys excessive and sells low.
He misplaced cash on $SMOLE twice in simply 20 minutes, with a complete lack of 371 $SOL($70K).
Then he spent all 2,549 $SOL($484K) to purchase $SLERF.https://t.co/X4aRpNrZuC pic.twitter.com/oZlWkyKD8B
— Lookonchain (@lookonchain) March 21, 2024
SMOLE, regardless of solely being out for someday, has already seen large criticism and a 17.1% worth drop. At writing time, the memecoin is altering palms at $0.0001499, a 70.39% lower from its highest worth of $0.0005086.
As this may recommend, FOMO seemingly drives memecoin merchants’ choices throughout this presale meta. The pattern has seen lots of of hundreds of thousands of {dollars} despatched to memecoins, most of which report hundreds of thousands in losses for buyers.
2024 is a #FOMO #YOLO sort of yr
go for it ! pic.twitter.com/AT8iMZchdQ
— Crypto Damus (@AstroCryptoGuru) March 20, 2024
Regardless of skilled merchants with the ability to revenue from this pattern, the present numbers trace at a substantial quantity of merchants dropping large figures whereas attempting to catch the subsequent memecoin to go “turbo parabolic,” even when it doesn’t have a long-term roadmap.