When FOMO Goes Wrong: How This Solana Whale Suffered Massive Losses On 11 Memecoins
All coins bring a notable deficit as the whale turns victim to FOMO.
Bloomberg Analyst explains the advantages of the memecoin frenzy. Not all crypto traders get to bank on the opportunities brought by the high fluctuations of memecurrencies. Solana’s WIF developer missed out on 693 million by selling prematurely, while the emerging memecoin scored a new all-time high of $3.46 last Friday.A Flurry of Memecoins Skin Solana Whale’s PocketsWhile not capitalizing on potential profits in crypto can lead to Fear Of Missing Out (FOMO), surrendering to such emotional conditions can lead to huge losses. As depicted in this case by LookOnChain, one unlucky whale, unfortunately, employed the ‘buy high, sell low’ strategy on their memecoin choices, losing an eye-watering $174,000 in the process.The whale acquired 11 memecurrencies on SOL, ending up in the hole on each one in a three-day buying spree. These include unknown tokens not available on major centralized platforms and satirical remade names of known coins, such as Book Of Pepe (BOPE), DogWifHat Twin (SAM), or The Book Of Missing Out (BOMO).However, the unfortunate trader lost the most on Snap ($NAP), getting a return of 222.68 SOL after initially putting in 500 SOL. Converting to a deficit of $56K, the $NAP memecoin continues to plunge, facing a 53% drawdown in the latest 24-hour period. U Sell U Gay (USUG) was the second-worst trade by the whale, resulting in a poor return of 4.21 after an initial 20 SOL investment.How Solana’s Memecoin Bonanza Escalated FurtherMeanwhile, Solana’s blockchain is thriving with successful canine coins, with Dogwifhat (WIF) emerging as the day’s top gainer with a 32% upswing. Approaching the all-time high of $3.46, WIF serves as a symbol of the current memecoin craze. While many investors frown upon memecurrencies due to extreme price fluctuations, others take the opportunity to grow their portfolio.Bloomberg Financial Analyst and podcaster Joe Waisenthal remarked, “There are very few businesses that can grow 1000x in a short period of time.” He singled out memecoins as the sector with very high rewards “that almost no equity could satisfy.” The reply critiqued the claim that memecoins are “embracing nihilism,” initially brought to attention by Ambient Finance founder Doug Colkitt.Solana’s two largest memecoins, Dogwifhat (WIF) and Bonk (BONK), now encircle a market cap of $3.09 billion and $1.65 billion, respectively. In monthly terms, the two canine siblings fetched 81% and 94% gains, but the yearly perspective sees BONK riding the bullish wave with 3,767% profit in the 365-day timeframe. SOL’s top memecoins have been the darling of major exchanges, with Binance listing Book of Meme (BOME) on their platform just two days ago.On the Flipside The Layer-1’s main token, Solana (SOL), surged to $207 on Monday.
#4 ranked SOL is now under 20% from its all-time high of $259.96, scored over two years ago. Why This MattersTrade analysis showcases the complexity of cryptocurrency trading, with price fluctuations frequently being unforeseeable.Delve into DailyCoin’s trending cryptocurrency stories:Slerf Developer ‘Accidentally’ Burns $10M in Presale FundsEl Salvador’s Bitcoin Vault Reveals Way More BTC Than We Knew