Traders are trading "this coin" like crazy
Everyone knows the volatility of the cryptocurrency market. Among the many investors who speculate in cryptocurrencies, there are always some who cannot bear the large fluctuations in a period or are influenced by emotions and trade, eventually leading to losses.
Recently, Finbold has monitored a trader who specializes in trading the meme currency $PEPE. At first, he had great faith, but in the end, because he could not bear the losses, he chose to sell all his positions at a loss. In just one month, he lost a lot of money. up to $2 million.
Image source: SpotChain
Losing $2 million in one month
What happened? It turns out that a cryptocurrency trader with the Ethereum ($ETH) address "0x8376..." started in May and purchased a total of 2.253 trillion $PEPE tokens at an average cost price of $0.00001325 per $PEPE token. Token.
Subsequently, the price of $PEPE once reached $0.00001656, but continued to decline in the following June, reaching a minimum of $0.00001021, almost with an extra 0 in front of the price. As the market changed, this trader could not bear the loss. Started selling its holdings of $PEPE when the price dropped in an attempt to cut losses.
Image source: SpotChain
According to the latest data, the address 0x8376 has been sold 5 times in the past 2 months. He made slight profits in the first few times, but fell into losses in 2 large transactions in June. In the end, he sold each token for 0.00001249 US dollars, 1.953 trillion pieces of $PEPE were sold below cost, resulting in a total loss of US$1.577 million.
Further observing his trading records, Finbold found that the trader’s overall realized losses since 2021 have reached $1.875 million, with most of the losses coming from $PEPE transactions.
Fall before dawn?
Buying low and selling high sounds like a very simple principle, but no one can predict when prices will be high and when they will be low.
The story of this trader reflects a common phenomenon in the cryptocurrency market - the survivor theory. If the price of $PEPE then becomes depressed and cannot break through the position where the trader sold again, then you may be able to It is said that his stop loss was timely, but if the $PEPE coin rebounds and exceeds $0.00001249, then this will undoubtedly become a story for people to laugh at.
Is stop loss right or wrong? No one can tell clearly, but what investors can do is to try to avoid investing huge amounts of money in the extremely volatile meme currency market, allocate large amounts of funds to long-term assets with higher stability, and use small amounts without damaging the capital. Playing meme coins with funds and mentality may be a more stable trading strategy.
Facing the highly volatile cryptocurrency market, investors should learn how to manage risks, formulate reasonable investment strategies, exit the market when profits are made, and decisively stop losses when necessary, in order to avoid falling into a bottomless pit of losses.
