This crypto-whale lost $300,000 in 2 days trading PEPE

O meme coin boom in 2024 it attracted greedy speculators looking for quick gains in a player-versus-player trading scenario. Despite some success stories that have come into the spotlight, most traders have accumulated losses – as with a PEPE whale that lost more than US$300,000 in the last two days.

In particular, data from SpotOnChain estimates that cryptocurrency whale lost US$188 thousand on a trade worth US$15.10 million in 15 days. As suggested by on-chain activity, 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 US$7.754 million. Later, the multisig wallet probably sold out on May 7 for $10.557 million and a profit of $123,000.

PEPE FOMO whale and makes losses

However, the ‘fear of missing out’ (FOMO) dominated the whale, while PEPE pumped a return of the meme coin craze. Thus, the trader bought US$4.853 million in tokens on May 16 to sell two days later at a loss.

On May 18, the whale deposited all of its PEPE tokens into Binance at an estimated value of US$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 wonder if the meme coin craze is finally over.

Meme coins and the greatest fool theory

In conclusion, the trader’s unfortunate loss serves as a warning to those who are thinking about investing in meme coins. The risks associated with trading these highly volatile and speculative markets cryptocurrencies cannot be exaggerated.

Meme coins like PEPE often lack fundamental value and are driven by hype and buzz on social media. Traders who buy these coins are essentially gambling in hopes that someone will buy them at a higher price.

This mentality aligns with the “Great Fool Theory”, which suggests that profits can be made by purchasing overvalued assets and selling them to a “great fool”.

However, this theory also highlights the risk inherent in such investments, as the market ultimately runs out of willing buyers. When the hype subsides and demand decreases, traders can be left with worthless assets, leading to substantial losses. financial losses.

The story of this trader’s misfortune should serve as a reminder to approach meme coin investments with caution. It is crucial to carry out thorough research, understand the risks involved and never invest more than you can afford to lose.

Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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