A cryptocurrency trader has lost nearly $74,000 in just three minutes with a common trading mistake. The trader was speculating with the $RICH memecoin on Solana (SOL), losing 325.8 SOL in two poorly executed trades.
Lookonchain reported the case on December 13, which is a cautionary tale for crypto traders to avoid letting emotion dominate. In summary, the speculator deployed 495 SOL in two trades to end up with 169.5 SOL.
Interestingly, SOL was changing hands by nearly $227 at the time of this trading, as shown in SolScan. Therefore, this crypto trader has effectively turned around $112,000 into $38,000 in three minutes, booking a massive loss.
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Solana trader lost nearly $74,000 in three minutes with RICH
Precisely, this Solana trader bought the dip of a trending memecoin called RICH, believing he had found a trading opportunity. The address ‘BBgw(…)Fuud’ spent 198 SOL in two transactions of 99 SOL each to buy 4.17 million RICH.
However, the memecoin continued crashing, dropping 60% more from his buying order, making the trader panic-sell its position with losses. This first trade returned him 76 SOL in exchange for the 4.17 million RICH, losing 122 SOL tokens.
Right after selling it, RICH bounced back the 60% crash, causing ‘BBgw(…)Fuud’ to buy with fear of missing out (FOMO), deploying even more money in this second trade. This time, there were three transactions of 99 SOL each, totaling 297 SOL for 8.7 million RICH.
Yet, once again, it was a market trap, finding price resistance that sent the memecoin lower. The negative price action following his second purchase again triggered the trader to capitulate and sell the tokens with losses. ‘BBgw(…)Fuud’ received 93.5 SOL in exchange for the 8.7 million RICH, losing an additional 203.5 SOL.
Overall, this Solana trader’s story demonstrates what can happen when speculators let emotion dominate their decision-making without a clear plan. Chasing hype and buzz can expose crypto traders to these emotional traps, resulting in significant (and fast) losses.
Featured image from Shutterstock.
