A trader’s $90 bet on an obscure meme coin has ballooned to $1.7 million, as per an X post from trading analyst Kakashi.
Imagine someone new coming to memecoins and the first thing he sees is this $90 to $1.7M pic.twitter.com/3NUSgguMPz
— Kakashi (@kkashi_yt) August 1, 2024
That’s an 18,888x unrealized gain on that initial $90 bet, which is extraordinary.
Of course, that doesn’t mean anything until the gains are realized. And Kakashi didn’t reveal whether the wallet sold its position.
Another X user complained in a reply that they had seen a $14 investment balloon to $340,000 on Wednesday but had not been able to sell. Kakashi replied that it could have been a “honeypot.”
That’s a token that a developer programs to be impossible to sell – a common type of crypto scam.
See here the eight types of scams that Cryptonews.com advises readers to avoid in 2023.
Another reason why the user might not have been able to sell could be due to low liquidity.
A new meme coin might only have available liquidity of around 10% or less of its market cap.
Either way, the above examples highlight some risks of buying a meme coin.
Yes, huge gains are possible, but losing all your money to a scam is also possible, as another X user complained in reply to Kakashi.
It’s a freezable acct. Once u buy, u can’t withdraw or swap back. It happened to me. Am new too😭😪😪 now am down no money to buy another coin. May God help us all
— mercy goodluck (@MercyG49993) August 1, 2024
As Kakashi commented, things aren’t always as simple as they seem in meme coins.
To our fellow beginners, remember things are not that simple as it may seem in memecoins. Dont fomo.
— Kakashi (@kkashi_yt) August 1, 2024
Meme Coin to Consider – The Meme Games (MGMES)
Newly launched meme coins like those referenced above are fraught with scam risk.
Traders often see a meme coin rapidly growing and FOMO in without doing their due diligence.
A better way to get into a meme coin before its price explodes upwards is via new presales.
Meme coin presales usually run for a few weeks, allowing investors to fully understand a project and for the hype to grow.
That gives a better foundation for a crypto to experience a good price pump once it actually launches.
One new meme coin that analysts at Cryptonews.com think has a lot of potential is Olympics-themed crypto The Meme Games (MGMES).
The play-to-earn meme game is running a presale concurrently to the Olympics and is already seeing strong traction, raising over $300,000.
See why popular presale analyst Jacob Crypto Bury thinks new crypto MGMES has 10x potential.
Analysts at Cryptonews also rank as one of their top presales to buy this summer.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
