Cryptocurrencies recently seem to contain fairy tales where small investments turn into great wealth thanks to meme coins. A story that emerged recently showed that this is not entirely the case, revealing that there are losers as well as winners. Here are the events that tell both sides of the story.
Thousands of Dollars in Profit
A cryptocurrency investor turned his initial investment of $155,000 into a portfolio worth $1.16 million in just two days. These transactions took place on the Solana (SOL) network and benefited from the speculations on AMC and GME meme coins during Roaring Kitty’s return.
Lookonchain announced the anonymous investor’s approximately 650% profit in a post on X on May 15. The cryptocurrency investor spent $61,000 to buy 27.58 million AMC tokens and $94,000 to buy 30.78 million GME tokens. Currently, the value of this investment is around $1.16 million.
These meme coins are seen as a reflection of AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) stocks, which came back on speculators’ radar after the success during the 2021 GameStop short squeeze.
Thousands of Dollars in Loss
On the other hand, it was seen that the situation is not only about profits. Some investors faced significant losses in GME transactions despite some successful stories. In another Lookonchain post, it was noted that not everyone made a profit from meme coins.
The post included the following words:
These three people lost tens of thousands of dollars by buying GME with FOMO and selling in panic after the price dropped.
Lookonchain emphasized the importance of not getting caught up in the buying wave due to the fear of missing out (FOMO) or selling in panic during price drops.
In the past, a meme coin investor who lost $37,000 in 17 minutes due to the same FOMO and panic selling process on Solana also drew attention. Meme coins continue to pose a significant problem in the crypto world, especially for those who enter the sector with the aim of making “easy money”.
Although meme coins provided great returns in March, not all investors were so lucky, and many rugpull incidents deeply shook the market. In the future, it will be beneficial for investors to make careful meme coin selections.
