Trading memecoins is risky and requires caution
Despite the impressive success of $MOODENG, not all memecoins can bring positive returns. For example, a trader lost nearly $1 million by investing in the memecoin $MBAPPE, highlighting the high volatility and risk of the memecoin market.
Investors should also be careful of the "survivorship bias" mentality, which is a logical fallacy that draws wrong conclusions when people pay too much attention to success stories and ignore failure stories.
For example, when you see news that many people have become rich by using memecoins, you mistakenly believe that buying memecoins will definitely make you rich, and you will become overly optimistic and confident. However, if you don't do a comprehensive study of the trading target and proper risk management, you may make the wrong decision.
Previously, the memecoin Normie ($NORMIE) on the Base blockchain once attracted much attention, but suddenly plummeted 99% after suffering a serious attack.
A trader once spent $1.16 million to buy $NORMIE and never sold it, resulting in the value of his position being almost zero. This case reminds us that not every investor can be a lucky person in the memecoin market.