A crypto trader who suffered a significant loss of over $2 million during the previous market cycle by investing in Shiba Inu (SHIB) at its peak and selling at the bottom has now made a notable move by purchasing $1 million worth of PEPE.
According to Lookonchain's recent report posted on May 29, the trader's address '0xD21…07010' withdrew 67 billion PEPE tokens, equivalent to $1.02 million, from the OKX exchange.
This purchase took place on May 29 at 08:21 am UTC, accompanied by smaller acquisitions of five other tokens: Fetch (FET), SingularityNET (AGIX), Arbitrum (ARB), The Graph Token (GRT), and Bone ShibaSwap (BONE), each valued at less than $500,000. Additionally, the trader already held 35.27 billion SHIB, valued at $980,000.
More than $2 million lost on SHIB trades in 2021–2022
But according to on-chain data, the same trader's address with the Shiba Inu meme coin has previously lost a billionaire. During the 2021 bull market frenzy, the trader paid $2.98 million for 40.9 billion SHIB.
This was probably a decision motivated by "fear of missing out" (FOMO), since SHIB was at its peak following an impressive performance, which is comparable to what PEPE stands for in this cycle.
This trader retained their SHIB position until it was getting close to its lowest value in 2022, when the bear market took control. At this time, "0xD21...07010" gave up and liquidated the entire trade, losing $2.55 million in total due to 85.5% losses.
The trader's narrative serves as a warning about the dangers of allowing emotion to take control when trading cryptocurrency. Because cryptocurrencies are such unpredictable investments, poor choices could result in irreversible losses just as quickly as sporadic gains.
Furthermore, in the absence of a distinct value proposition, meme coins like SHIB and PEPE are driven by excitement, FOMO, and greed. Based on this trader's past performance, it appears that these tokens raise the danger of disaster. The market is currently speculating as to whether history will repeat itself and PEPE and the other popular tokens will reach a peak in price.
May 2024, Cryptoniteuae