This Memecoin Trader Lost $341.4K in Less Than a Minute

Investing in memecoins has emerged as one of the easiest ways for cryptocurrency investors and traders to turn a few thousand into millions. However, recent data shows that not everyone has succeeded in this endeavor. An example is a trader who suffered great loss investing in a memecoin allegedly associated with former U.S.  president Donald Trump.

Detail of the Transactions 

Onchain data revealed by Lookonchain revealed that the trader invested 2,500 $SOL ($342.1K) to acquire 91,705.6 of the memecoin DJT. However, the coin’s value plummeted leading the trader to cash out a mere 4.91 SOL ($673), resulting in a staggering loss of $341,400 in less than 1 minute. 

What a sad story!

This guy spent 2,500 $SOL($342.1K) to buy 91,705.6 $DJT but only got 4.91 $SOL($673) back when he sold it.

He lost $341.4K in less than 1 minute!https://t.co/jrL0ZGa76Dhttps://t.co/qICy7GZfmj pic.twitter.com/olr78X8snp

— Lookonchain (@lookonchain) June 18, 2024

Minted two months ago on the Solana blockchain, DJT, the memecoin the trader invested in, is allegedly associated with former U.S. president Donald J. Based on the rumors which started with a tweet from The Pirate Wires’ X (Twitter) account on Monday, the token rallied as much as 180% Monday. 

However, at the time of writing, its market capitalization has decreased to $794,990. DJT is now trading at $0.0007990, representing an increase of 1,451% for the last 24 hours.

In a different outcome, onchain data revealed details of another trader who also brought 52.09M DJT with 1,363 $SOL($188K) before the news that Trump is launching an official token. Following the news, he withdrew another 1,000 $SOL($138K) to buy more of the memecoin. This wallet, which many speculate belongs to an insider, currently holds a substantial amount of $DJT (58.71 million), making them the third-largest holder.

Profitable But Not Always

The experience of this trader demonstrates the inherent risks associated with investing in memecoins.  While there have been several reports of traders who made life-changing funds from trading memecoins early enough, a number of investors have suffered huge losses just like the above trader. 

Evidently, the latest developments emphasize the need for abundant caution while trading or investing in memecoins. The mouthwatering gains often portrayed by fortunate investors do not necessarily reflect the outcome for everyone. Additionally, the frequently cited investment principle of putting in only what one can afford to lose can protect trades and investors from losing significant capital to memecoin speculation.