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A trader’s $90 wager on a little-known meme coin has surged to $1.7 million, according to a post on X by trading analyst Kakashi.
Just picture a newcomer exploring memecoins and the first thing they encounter is this $90 to $1.7M transformation pic.twitter.com/3NUSgguMPz
— Kakashi (@kkashi_yt) August 1, 2024
This represents an astonishing 18,888x unrealized profit on that original $90 investment.
However, this means little until the profits are actually taken. Kakashi did not disclose if the wallet liquidated its holdings.
In a reply, another X user lamented that they had witnessed a $14 investment escalate to $340,000 on Wednesday but were unable to sell. Kakashi responded that it might have been a “honeypot.”
This term refers to a token that a developer has coded to be impossible to sell – a frequent type of crypto scam.
Check out the eight scam types that Cryptonews.com advises readers to steer clear of in 2023.
Another reason the user may have been unable to sell could be attributed to low liquidity.
A newly launched meme coin might only possess around 10% or less of its market cap in available liquidity.
Regardless, the aforementioned examples underscore some dangers associated with purchasing a meme coin.
While significant profits are attainable, there is also a risk of losing all your funds to a scam, as another X user expressed in a response to Kakashi.
It’s a freezeable account. Once you purchase, you can’t withdraw or swap back. It happened to me. I’m new too
now I’m down with no money to buy another coin. May God assist us all
— mercy goodluck (@MercyG49993) August 1, 2024
now I’m down with no money to buy another coin. May God assist us all
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As Kakashi noted, the landscape of meme coins is often more complex than it appears.
To our fellow beginners, keep in mind that things are not as straightforward as they might seem in memecoins. Don’t fall for FOMO.
— Kakashi (@kkashi_yt) August 1, 2024
Meme Coin to Consider – The Meme Games (MGMES)
Recently launched meme coins, like those mentioned above, carry significant scam risks.
Traders often observe a meme coin’s rapid increase and succumb to FOMO without conducting proper research.
A more prudent approach to entering a meme coin before its value skyrockets is through new presales.
Meme coin presales typically last for a few weeks, giving investors ample time to comprehend a project and build excitement.
This creates a stronger foundation for a cryptocurrency to experience a substantial price surge once it officially debuts.
One emerging meme coin that analysts at Cryptonews.com believe has considerable potential is the Olympics-themed crypto The Meme Games (MGMES).
This play-to-earn meme game is currently conducting a presale alongside the Olympics and has already gained significant interest, raising over $300,000.
Discover why popular presale analyst Jacob Crypto Bury believes new crypto MGMES has 10x potential.
Analysts at Cryptonews also list it among their top presales to purchase this summer.
Buy MGMES Here
The post Trader’s $90 Bet Balloons to $1.7 Million With New Meme Coin appeared first on Cryptonews.
