Investor Loses $147,000 Playing Memecoins on Solana

According to Lookonchain, a memecoin trader lost about 5400 SOL (approximately $147,000 USD) over a three-day period. Another trader invested in 11 different meme tokens but never had enough patience to earn a profit.

Not everyone can make money by trading #memecoins on #Solana!

This guy traded 11 #memecoins in 3 days, losing money on each one, for a total loss of 754 $SOL($147K).

He seems to be very #FOMO, always buying high and selling low.https://t.co/lxijIqGLZC pic.twitter.com/f7KfOf5i17

— Lookonchain (@lookonchain) March 17, 2024

Analysis indicates that this trader often succumbed to FOMO, buying tokens at high prices and then selling them when prices dropped. Overall, the anonymous trader invested 3,160 SOL (about $628,840) but ended up with only 2,406 SOL (approximately $478,794).

This FOMO behavior may have been triggered by the recent Solana ecosystem welcoming a memecoin created just three days ago, which was listed on Binance with a market cap exceeding $1 billion. Additionally, there are other prominent memecoins on Solana like BONK and WIF.

Investing in memecoins has become one of the easiest ways for traders to turn a few thousand dollars into millions. However, Lookonchain proves that not everyone succeeds in this endeavor.

High volatility demands patience from investors over a relatively long period for their investments to yield profits. For example, one of the memecoins in this trader’s portfolio, IQ50, was recently airdropped to NFT holders. According to data from Gate.io, the airdrop token also experienced significant growth. Nevertheless, the memecoin trader lost 109.55 SOL ($21,800) in this transaction due to lack of patience.

Related: Binance Announces Listing of Book of Meme (BOME)

Chart BOME – Solana’s Memecoin after being listed on Binance