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This crypto whale lost $300,000 in 2 days trading PEPE
THE coin boom in 2024 has attracted eager speculators looking for quick wins in a player versus player trading landscape. Despite some success stories that have been brought to the spotlight, most traders have accumulated losses, as in the case of a PEPE whale who lost more than $300,000 in the last two days.
Especially, data by SpotOnChain estimates this cryptocurrency the whale lost $188,000 in 15 days, amounting to $15.10 million. As the on-chain activity suggests, the whale began trading PEPE on May 4 with a purchase of $2.68 million.
On May 5, the trader purchased another stack of PEPE worth $7.754 million. Later, the multisig wallet probably sold everything on May 7 for $10.557 million and a profit of $123,000.
PEPE whale FOMO and making losses
However, the “fear of missing out” (FOMO) dominated the whale, while PEPE pumped in a return of coin mania. Thus, the trader purchased $4.853 million worth of tokens on May 16 only to resell them two days later at a loss.
On May 18, the whale deposited all its PEPE tokens on Binance for an estimated value of $4.542 million. This latest trading activity resulted in losses of $311,000, exceeding previous profits.
Input/Output of 0x1a2e64b8a1977bf018850b377020bc33eaaac3c9. Source: SpotOnChain
Well-known cryptocurrency influencers are wondering if the coin craze is finally over.
Memecoins finished? 💀
– The Crypto Dog 📈 (@TheCryptoDog) May 19, 2024
Meme Coins and the Greater Fool Theory
In conclusion, the trader’s unfortunate loss serves as a warning to those considering investing in meme coins. The risks associated with trading these highly volatile and speculative securities cryptocurrencies cannot be overstated.
Meme coins, such as PEPE, often lack core value and are driven by hype and social media buzz. Traders who buy these coins are essentially gambling in the hopes that someone else will buy them at a higher price.
This mentality aligns with the “greater fool theory,” which suggests that profits can be made by buying overvalued assets and selling them to a “greater fool.”
However, this theory also highlights the risk inherent in such investments, as the market eventually runs out of willing buyers. When the hype dies down and demand decreases, traders can be left with worthless assets, leading to substantial losses. financial losses.
The story of this trader’s misfortune should remind us to approach coin investments with caution. It is essential to conduct thorough research, understand the risks involved and never invest more than you can afford to lose.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.