Recently, the popularity of mem tokens, especially Solana (SOL) based mem tokens, has increased greatly.
While this pushes investors to invest in mem tokens, Lookonchain said that not everyone will make money from mem token trading and gave an example of this.
Accordingly, an investor made 11 Solana memecoin transactions in three days and lost money in each transaction.
While the investor's total loss was 754 SOL (147 thousand dollars), Lookonchain said that this address was constantly buying at high prices and selling at lower prices, suffering from fear of missing out (FOMO).
“Not everyone can make money trading Solana-based mem tokens!
This guy traded 11 mem tokens in 3 days, losing money on each one. He lost a total of 754 SOL (147 thousand dollars).
This investor gets caught up in FOMO and always buys high and sells low.”
Therefore, investors need to be more careful when trading Solana-based mem tokens amid high volatility in the market.
*This is not investment advice.