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Analyst Warns About Buying Memecoins: Memecoins Are Risky

Published 05/13/2023, 05:49 AM
Updated 05/13/2023, 06:00 AM
Analyst Warns About Buying Memecoins: Memecoins Are Risky

  • A crypto investor withdrew 174 ETH and bought 2 trillion LADYS $0.0000001504.
  • Later, the trader sold the memecoins just for 73.5 ETH at $0.00000006142.
  • Lookonchain shared the details and warned his followers about the risky nature of memecoins.

The on-chain researcher Lookonchain unfolded a recent whale activity in which the investor lost 100 ETH for the Milady memecoin LADYS. According to the analyst, the trader withdrew a remarkable number of ETH worth $321,000 to buy an enormous number of LADYS, which he later sold at a noticeable loss.

Lookonchain shed light on the risky nature of memecoins, illustrating with the example of a trader who lost 100 ETH for a memecoin:

As per the findings of the crypto investigator, the trader withdrew 174 ETH from the crypto exchange Gate.io and bought almost 2 trillion LADYS at the rate of $0.0000001504 on May 12. Later, he sold these memecoins for just 73.5 ETH at the rate of $0.00000006142.

Currently, the memecoin is traded at a price of $0.0000000673, marking a 21.64% in the last 24 hours. The 24-hour trading volume of the LADYS is marked as $70,202,077 while its current market cap stands at $49,956,978.

Seven Days’ LADYS’ Price

Comparatively, the current value of the leading cryptocurrency by market cap ranking which the trader lost for LADYS is $1,798.26, with a 24-hour trading volume of $7,833,163,894. Comparing the value of both digital currencies in the current crypto market is evident enough to highlight the intensity of the loss the trader had.

It is noteworthy that the crypto community is currently swamped with memecoins, while traders increasingly show interest in them. For instance, the community has been accumulating whopping amounts of the frog-themed memecoin Pepe, over the past few weeks, finally resulting in a substantial plummet in its price. Lookonchain, in such a scenario, has warned his followers about the risky nature of memecoins, asking them to hold their “funds safe”.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Analyst Warns About Buying Memecoins: Memecoins Are Risky appeared first on Coin Edition.

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