A cryptocurrency trader has, while looking to trade lesser-known digital assets on the Solana ($SOL) network, managed a loss of $46,000 in just three minutes after the price of the token, Milady Wif Hat ($LADYF) plunged.
According to on-chain analysis service Lookonchain, the trader invested 300 Solana ($SOL) to buy the cryptocurrency in a trade that went awry, as the token’s price quickly started dropping to the point the trader managed to, in the span of three minutes, sell back their stake for 36.49 SOL.
As Lookonchain points out, this means that the trader lost 263.5 SOL tokens, worth around $46,000, in just three minutes trading the meme-inspired cryptocurrency.
The incident highlights several key factors native to the cryptocurrency space, which include the volatility inherent to it that’s especially present in lesser-known and meme-inspired cryptocurrencies, and the liquidity issues that these newly launched tokens can have, forcing traders to suffer significant losses to slippage.
The trade comes at a time in which the memecoin scene on the Solana network has been surging, with several traders making extreme returns off of newly launched digital assets. In one case, a memecoin saw a dramatic price rise of over 3000% over a 24-hour period, and a cryptocurrency trader managed to take advantage by betting 50 $SOL, worth around $9,000, in the cryptocurrency. Its rise has seen them make a profit of over $123,000.
In another case, a cryptocurrency trader managed to make a profit of over $3 million trading a newly launched Solana-based memecoin within just 12 minutes after betting nearly $2 million on it right after it started trading.
In yet another incident, a trader, identified on-chain by the alias “sundayfunday.sol,”turn a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.
Various users on the microblogging platform X (formerly known as Twitter), have suggested that the traders making such high-risk investments in these newly launched cryptocurrencies are the developers behind them or marketers helping pump the cryptocurrency’s price up so they could later sell the tokens at a higher value.
Featured image via Unsplash.
