Big Losses in the Crypto World: Lessons from the Machi Big Brother Case
The crypto world was shocked again by the news of a major loss experienced by a famous influencer, Machi Big Brother. With a following of 164,400 on social media, Machi Big Brother lost $8 million from an investment in an ERC-20 token called FRIEND1.
The investment began on May 3, when Machi purchased 8.6 million FRIEND tokens at an average price of $1.81 per token, spending a total of 4,975 ETH or about $15.6 million. However, bad luck struck when the price of the FRIEND token fell 55%, leaving Machi with an investment value of only $6.95 million1.
This case is a strong warning for crypto investors. The volatile and risk-filled crypto market can result in huge losses in a short period of time. Investments in speculative tokens, such as the meme coin FRIEND, are often driven by hype and have no real value1.
Machi Big Brother's losses highlight the importance of conducting in-depth research and understanding the risks before investing in crypto assets. It's also a reminder that even influencers with huge influence are not immune to losses in the crypto market1.
This article was prepared by collecting information from various media sources to provide an accurate and factual picture of the risks of investing in the crypto world.
