A Memecoin Trader Loses $340,000 in Under a Minute

A Memecoin Trader Loses $340,000 in Under a Minute

In a shocking turn of events, a memecoin trader lost a staggering $340,000 in under a minute, according to data from Lookonchain on X (formerly Twitter) and two transactions on Solscan.

The trader, who remains anonymous, attempted to swap 2,500 SOL (approximately $342,000) for the newly launched TrumpCoin (DJT) using a trading bot on June 18th. However, instead of receiving the DJT tokens, the trader was given 92,000 fake DJT tokens created by scammers.

The transaction went through a "false" liquidity pool on Raydium, which was not adequately capitalized and contained scam DJT tokens. When the trader attempted to reverse the transaction on Solana, it was too late. The trader's initial 2,500 SOL was reduced to just 5, resulting in a loss of over $340,000.

The trader received only $673 for the DJT tokens, a far cry from the expected value. This incident highlights the risks faced by traders in the DeFi space, where scammers often create "false" liquidity pools to take advantage of traders' mistakes.

Some DeFi platforms warn users about such scams, but trading bots typically do not provide this information. This can lead to traders inadvertently trading the wrong coins, especially when dealing with newly launched coins.

This incident serves as a reminder of the dangers that crypto investors face beyond market volatility. As the affected trader quipped on X, "Life goes on."

However, not all memecoin traders have had such a disastrous experience. Some have even become millionaires in a matter of hours or days. For example, one trader made a profit of $9.5 million in just 10 days thanks to the Celebrity Token MOTHER launched by US rapper Iggy Azalea.

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