Crypto trader turns $1 million into $9k in an hour 
Cryptocurrency Aug 29, 2024 Share
In what can be considered the darker side of trading meme cryptocurrencies, a trader has lost a significant amount of money by betting on a token that had not proven itself in the market.
Specifically, the trader recently saw a massive $1 million investment plummet to just $9,000 within an hour, according to data shared by Lookonchain on August 29.
According to the analysis, the trader created a new wallet and used 7,156 SOL (valued at $1.03 million at the time) to purchase a meme coin named MBAPPE. This transaction, completed in a single move, quickly turned sour as the value of the meme coin nosedived, leaving the trader with a balance of only $9,200.
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Crypto trader’s MBAPPE transaction. Source: Lookonchain
It’s worth noting that the meme coin, launched on the Solana blockchain, was at one point linked to the French footballer Kylian Mbappé. However, it turned out that the token was a scam, promoted on social media mainly through the X account of Mbappé after it was hacked.
The token’s market value surged quickly upon its release but soon lost all gains. Notably, several crypto players, such as Crypto.com, warned investors not to fall for the scam.
Don’t fall for the $MBAPPE scam.#SafetyFirstAlways pic.twitter.com/kCfdS9GatI
— Crypto.com (@cryptocom) August 29, 2024
The current situation seems to emulate the scams that have recently emerged, particularly following the popularity of celebrity-related meme coins, mainly on the Solana network.
This incident highlights the dangers of investing large sums in relatively unknown and unproven digital assets, where market manipulation and illiquidity can result in catastrophic losses.
MBAPPE scam beneficiaries
On the other hand, not all traders suffered losses from betting on the scam token. As reported by Finbold, a trader turned a modest $29 investment into $125,000 in just three minutes by trading the MBAPPE coin.
It’s worth noting that while meme coins can potentially return significant profits, investors often jump on celebrity-related tokens due to fear of missing out (FOMO). However, this approach has also led to notable losses, as previously reported by Finbold.
For instance, a trader’s initial investment of almost $900,000 worth of Solana in the “Restore The Republic” (RTR) token—politically biased in anticipation of the U.S. presidential election—ended up with just 113.3 SOL in four hours.
In summary, while established meme coins like Dogecoin (DOGE) have recorded significant profits for investors, thorough research is needed before investing in newly created tokens.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
