Cryptocurrency investing has been a hot topic in recent years, with many investors looking to make a quick profit from riskier assets like memecoins.
While rare cases show investors making big profits on such assets, not all stories have a happy ending, and one investor recently found out the hard way.
Amid the memecoin craze of the past few days, where cryptocurrencies such as Dogecoin, Shiba Inu, and most recently PEPE have risen to prominence, an investor known as @sighduck has suffered heavy losses while investing in multiple memecoins.
Investor loses BRL 737 thousand in less than a month
According to data shared by look at chainan on-chain analytics provider, the investor lost a total of $147,000 in less than a month.
The story gets even more painful when you consider that some of these memecoins, such as the TURBO and the AMskyrocketed in value after the whale sold its holdings.
The unlucky investor lost $46,313 while investing in the TURBO cryptocurrency as he bought the asset for $0.0004915 on May 4 and sold it all for $0.0002525 following the price crash a day later.
It turns out that TURBO’s price skyrocketed 10 times after it was sold, and BEN had an 85-fold increase, meaning the investor missed the time to make significant profits.
The controversy surrounding another memecoin called PSYOP also negatively impacted the investor. He traded 5 units of Ethereum (ETH) for the asset, which was considered a possible scam, and received 8.9 million PSYOP in return.
The investor felt cheated and decided to sell all of his coins without making a profit.
However, after the sale, PSYOP grew fivefold. Perhaps driven by the fear of missing another winning opportunity, he decided to spend another 60 ETH to buy PSYOP and sold it all after 10 minutes, again making no profit, probably afraid he would be scammed again.
2/ The first token @sighduck had been purchased $TURBO and lost 24 $ETH ($46,313).
He bought $TURBO at $0.0004915 on May 4, and he sold it all $TURBO for $0.0002525 due to the price drop a day later.
And the price of $TURBO skyrocketed 10x after he sold. pic.twitter.com/n2ddamVDpl
— Lookonchain (@lookonchain) May 26, 2023
Investment in memecoins
This memecoin investment story serves as a reminder of the risks associated with these highly volatile and speculative assets.
While some investors may have made a quick fortune from memecoins, most people face huge losses.
The lack of regulation and the unpredictable nature of these currencies can lead to high levels of volatility and market manipulation, making investing in these currencies extremely risky.
Investors interested in memecoins should be aware of the risks and take appropriate precautions. It is important to thoroughly research the project, development team and history of the coin before investing.
Furthermore, it is advisable to only invest an amount that you are willing to lose completely, as the memecoin market is highly speculative and volatile.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.