This incident highlights the extreme volatility and risk inherent in memecoin investments, serving as a cautionary tale for investors.
An investor lost over $300,000 in less than a minute after a high-risk cryptocurrency trade went bad. The investor bought 91,705.6 $DJT tokens for 2,500 $SOL, worth about $342,100, today at 00:39:31. Just 44 seconds later, they sold the tokens for only 4.91 $SOL, worth about $673. The investor reportedly bought from the wrong pool via a bot.
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
This incident highlights the extreme volatility and risk inherent in cryptocurrency investments, serving as a cautionary tale for investors. In a reply to Lookonchain’s report, an X user noted the importance of investors doing good research before investing in digital assets. He tweeted, “Well it means easy come easy go! Before entry do research max!”
The $DJT token, created two months ago on the Solana blockchain, experienced a surge of 400% in the past 24 hours, leaving many scratching their heads and wondering if this is the real deal or a hoax. This surge was due to an unconfirmed report that former U.S. President Donald J. Trump is associated with the token.
The Crypto Community Buzz
Many in the crypto community are skeptical about the legitimacy of the $DJT token. Ryan Selkis, founder of data provider Messari and a vocal Trump supporter, on X, stated there is a “50-50” chance the token is either legitimate or a scam. Also, Pirate Wires, a news and media company, claimed that Donald Trump is launching the $DJT token, with his son Barron heading the project. Mike Solana, CMO of the venture capital firm Founders Fund and editor-in-chief of Pirate Wires, shared a smart contract address in a reply to Pirate Wires’ tweet to increase visibility.
Despite these claims, Trump’s team has not confirmed the token launch. Blockchain data firms like Bubblemaps doubt the connection between Trump and the token. They noted that 67% of the token supply is concentrated in one cluster, and 43% of the total supply is on the Solana-based automated market maker Raydium.
Amid these widespread doubts, the TRUMP token’s value fell by 31% to $7.46 within four hours following the rumors, according to CoinGecko data. This significant drop resulted in over $150 million being wiped from the MAGA (TRUMP) market cap.