Trader’s $90 Bet Balloons to $1.7 Million With New Meme Coin
A trader’s $90 bet on an obscure new meme coin has ballooned to $1.7 million, as per an X post from trading analyst Kakashi.
Imagine someone new coming to memecoins and the first thing he sees is this $90 to $1.7M pic.twitter.com/3NUSgguMPz
— Kakashi (@kkashi_yt) August 1, 2024
That’s an 18,888x unrealized gain on that initial $90 bet, quite extraordinary.
Of course, that doesn’t mean anything until the gains are realized. And Kakashi didn’t reveal whether the wallet sold its position.
However, another X user complained in a reply that they had seen a $14 investment balloon to $340,000 on Wednesday, but had not been able to sell. Kakashi replied that it could have been a “honeypot”.
That’s a token that a developer programs to be impossible to sell – a common type of crypto scam.
See here the eight types of scams that Cryptonews.com advises readers to avoid in 2023.
Another reason why the user might not have been able to sell could be due to low liquidity.
A new meme coin might only have available liquidity of around 10% or less of its market cap.
Either way, the above examples highlight some of the risks associated with buying a meme coin.
Yes, huge gains are possible, but losing all your money to a scam is also possible. As complained another X user in reply to Kakashi.
It's a freezable acct. Once u buy, u can't withdraw or swap back. It happened to me. Am new too
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