A recent crypto sniping event has highlighted the dangers involved in using such methods as the sniper lost a significant amount. As per the data from Lookonchain, a trader incurred a huge loss of up to $465.6K in only 1 hour following buying the newly released $XZY token. The on-chain analytics platform disclosed this incident in a recent post on social media.
Crypto Trader Loses $465.6K Despite Using Sniping to Get Profits on $XZY
The data discloses that the trader potentially utilized an automated bot for sniping $XZY tokens right after Kanye West shared a post mentioning it. Immediately after that mention, the crypto sniper carried out the buyout while expecting a potential spike in the token’s price. Nonetheless, the trader who used the wallet address “ESeWz…..j9xx6d” did not get any gains. On the other hand, this activity resulted in a staggering loss of nearly $465.6K.
As per the market statistics, the outcomes of the $XZY tokens were not favorable, as the price suddenly plunged. Following a sheer dip in price, the trader went through a massive loss of almost 60.3% over the investment. In line with the data, the sniper initially purchased up ot $755.7K in $XZY. However, following the rapid price slump, the trader could only recover just $300K out of the respective amount.
Investing in Highly Volatile $XZY Leads to Losses Even after Paying Premium
According to Lookonchain, the crypto sniper even recompensed a premium of approximately 75 $SOL (equaling $10,000) to JitoTip, Nevertheless, despite that move, the crypto sniper could not prevent the above-mentioned losses. This incident serves as a cautionary story for those who leverage automated sniping strategies for low-liquidity tokens, especially while acting upon the trends on social media. Hence, due to the immense volatility of these tokens, they experience such big losses.
