2024

USDC

Lens

FOMO

The fear of missing out (FOMO) cost a trader $202k in losses in the past few days. The trader initially made a small profit by buying the $1 memecoin and quickly flipping it for USDC and SOL. The trader then chased $1/SOL prices with a large position size and cashed out at a staggering loss. 
Onchain Lens has revealed that a trader lost $202k in less than 2 days flipping crypto assets due to the psychological pressure caused by FOMO. 
According to the blockchain intelligence platform, the trader first got involved in the trade with a small size before doubling down on the second position. Although they realized a small gain in the first position, the second was disastrous, causing the subsequent loss. 
<h3 id="span-style-font-weight-400-trader-loses-202k-due-to-fomo-span">Trader loses $202k due to FOMO</h3> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 🚨 A Lesson on <a href="https://twitter.com/hashtag/FOMO?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#FOMO</a> 🚨 
 Here’s a cautionary tale of why you should never chase rising prices: 
 • 3 days ago, a trader bought 390.8k $1 for 6 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">$SOL</a> ($1,390). He quickly flipped them for $2,323 <a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">$USDC</a> and 3.86 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">$SOL</a> ($893), pocketing a small profit. 
 • Encouraged by the hype, he… <a href="https://t.co/uXxEftJg5B" rel="nofollow" target="_blank">pic.twitter.com/uXxEftJg5B</a> 
 — Onchain Lens (@OnchainLens) <a href="https://twitter.com/OnchainLens/status/1862381935429132334?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">November 29, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The trader’s first position on 26th November involved a $1,390 size where they purchased 390.8k $1 for 6 SOL. The trader then quickly cashed out his $1 holdings by converting the tokens to SOL and USDC. At the end of the transaction, the trader had $2,323 $USDC and 3.86 $SOL ($893), realizing a net gain of $1,826. 
The quick profits encouraged the trader to try the same trade on the 27th. This time, the trader got involved with a larger size, aiming for more profits. The trader liquidated his $USDC, $SOL, $CHILLGUY, and $MICHI, totaling $237K, and bought 3.22 million of $1. Unfortunately, he had bought the top candle, and the $1/SOL market began to dip. 
They held the position for nearly three days and exited today, turning the $237K investment into $17,823. At the end of the second trade, the trader had lost $202k. 
<h3 id="span-style-font-weight-400-another-trader-loses-654k-in-a-day-span">Another trader loses $654k in a day</h3> 
On November 27th, Lookonchain <a href="https://x.com/lookonchain/status/1861638725912142235" rel="nofollow" target="_blank">flagged</a> another trader who owns a wallet named sbfonchain.sol. The trader lost $654k in a day. According to the blockchain intelligence platform, the trader held WIF memecoin for less than a day and sold the holdings for 4.08 million USDC, losing $654k in the process.&nbsp; 
On November 21st, another trader lost $166.2k in two days due to FOMO. The trader bought Quant on November 21st, only for the price to drop. They then proceeded to sell Quant, losing $83.9k. In another round, the trader bought LETHIMCOOK coin, which also dropped immediately, costing him $81.3k. 
Another trader <a href="https://x.com/lookonchain/status/1856986273803645425" rel="nofollow" target="_blank">lost</a> $1.55 million after investing in FLAVIA at a premium price due to FOMO. The token dropped significantly immediately after the purchase, and the trader cashed out only $303k. 
While navigating the memecoin ecosystem may yield massive profits, the massive price swings may also cause devastating losses to investors. 
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FOMO: Here’s a cautionary tale of why you should never chase rising prices

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