A memecoin trader who rushed to buy 5 different memecoins in just 5 hours ended up losing a large amount of money. The trader’s total loss reached 274 $SOL, which is about $43.5K, according to data from Lookonchain.
FOMO Purchases Lead to 68% Loss for Memecoin Trader
This purchase was made out of fear of missing out (FOMO), or the fear of missing out, and the trader has bought these coins. FOMO is a familiar sensation to those investors who seek to capitalise on quickly evolving trends in the market. But the trader would soon find that using this feeling will only result in a great loss.
Within the 5 hours, the trader bought 5 different memecoins. Unfortunately, each of these coins declined in value immediately after the purchases were made. Consequently, the trader’s ROI became a loss of approximately 68%.
FOMO Buying Leads to $43.5K Loss in Meme coin Market
The total amount of $43.5k lost indicates the dangers of investing in cryptocurrencies and more so memecoins due to their erratic price movements. A lot of traders fail to be patient when prices are rising and they end up buying stocks when prices are high.
The specialists advise not to invest in coins due to fear of missing out, FOMO. They urged that people should take time, and conduct research before purchasing them instead of hurried decisions. While impulse buying is a relatively fun activity, FOMO buying is a sure way to get burned.
Therefore, this case, reported by Lookonchain, brings an important lesson of FOMO trading especially concerning the highly risky memecoins. Such behaviors are very dangerous because they are likely to cause massive loses as it was in this case. Traders are encouraged to avoid making impulsive decisions, undertake adequate research and act in the long-term interest of their investments to reduce risks.
Source: https://blockchainreporter.net/memecoin-trader-falls-victim-to-fomo/