A crypto trader experienced a significant loss of approximately $138,000 within just 35 minutes while trading a little-known Solana-based altcoin called $PUNDU. This incident is a stark reminder of the dangers of impulsive trading on new listings.
The allure of quick profits in the cryptocurrency market can be tempting but comes with high risks. The trader withdrew 1,535 SOL from a major cryptocurrency exchange and invested in $PUNDU as it opened for trading. Unfortunately, as the price began to drop, the trader sold their stake, only to recover 764 SOL, resulting in a loss of 721 SOL.
This scenario underscores the importance of due diligence and the potential pitfalls of “sniping” a coin. In this strategy, traders aim to buy a new cryptocurrency at the lowest price point immediately upon listing. While some traders have found success with this approach, it often involves sophisticated tools and automation, and there is a risk of market manipulation by the project’s developers or marketing teams.
This is not the first time a crypto trader has lost money due to inexperience, In a recent event, a trader experienced a substantial loss, with a decrease of $46,000 within three minutes following a sharp decline in the token value known as Milady Wif Hat ($LADYF).
The volatility of cryptocurrencies is particularly pronounced in lesser-known and meme-inspired coins, which can suffer from liquidity issues that force traders to incur significant losses due to slippage.
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