Someone invested in meme coins and lost NT$1.4 million in 5 hours
When investing in meme coins on the chain, there are many stories of people getting rich through small gains, but behind these stories, there may also be many cautionary tales about investment losses.
Yesterday (20th), on-chain analyst Lookonchain monitored that an investor purchased 5 meme coins in just 5 hours, but each coin suffered a loss, with a total loss of 274 Solana ($SOL). , worth approximately US$43,500, or approximately NT$1.4 million, with an average return on investment of approximately -68%.
Lookonchain said that the five meme coins he purchased were: $GASPODE, $Lump, $LOOM, $ACT and $SYDNEY. Among them, $ACT lost the most, reaching 219.12 $SOL, while $SYDNEY lost less, only 1.74. $SOL.
According to Lookonchain’s analysis, this investor purchased $ACT at nearly its all-time high, then sold on the sharp decline. According to data from DexScreener, $ACT once rose 19,888% in 24 hours, but the liquidity was only $783,000, and this investor was unfortunate to be the one to take over at the high point.
Lessons from losing money at the speed of light: Don’t FOMO
Why did this investor lose money at the speed of light? Lookonchain blames FOMO.
FOMO is the abbreviation of "Fear of Missing Out" in English, and its Chinese translation is "Fear of Missing Out". In the currency circle, FOMO means that investors make irrational decisions based only on unverified information they receive due to the fear of missing out on lucrative opportunities.
Failure in impulsive investing due to FOMO will not only cause financial losses, but may also cause serious psychological and interpersonal harm. According to an article in the financial media (Investopedia), investment failure will affect relationships with family members and other social relationships. If other rescue actions are not taken, you may experience social decline.
The FOMO effect in the currency circle has stimulated the investment of many worthless meme coins on the chain. (CryptoCity) has previously reported multiple similar cases. For example, an investor impulsively invested in the meme currency $RTR and ended up losing $898,500. He also bought frequently in a short period of time, not knowing that he was buying at a high point.
4 tips to determine whether you have fallen into the FOMO trap
Since FOMO may lead to investment failure, how do you know if you have fallen into the FOMO trap? Here are (Investopedia) 4 signs people are suffering from FOMO:
The demand to buy cryptocurrencies as soon as they hear about it has increased by a huge percentage
There is a greater tendency to trade or invest in cryptocurrencies simply because they have become popular recently
Keep thinking about how much money you can make if you execute trades
Obsessed with social media following cryptocurrency trends and transactions
These 4 signs may suggest that you are in a state of FOMO, and greed can lead to dangerous decisions that may be irrational and short-lived.
However, in the cryptocurrency market, which is extremely volatile and relies heavily on the community, investors are still exposed to FOMO information to some extent. Therefore, being cautious about making money from any cryptocurrency, analyzing information, developing a reliable investment strategy, and regularly reviewing past investment mistakes will help you to be "less FOMO" temporarily.
(Investopedia) also believes that self-discipline, verifying information and formulating investment strategies are the best tools to combat FOMO.
You can also use practical tools to control FOMO: Don’t want to be cut again? Let me tell you "8 major chain cleaning tools" to help you restrain FOMO
[Disclaimer] There are risks in the market, so investment needs to be cautious. The content of this article is for reference only. There are great risks in participating in meme currency investment, and the funds may be lost to zero. Users should refer to more diverse indicators to judge whether to invest and consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
