Today, crypto analyst Lookonchain spotted a whale who made a significant bet on a new Central African Republic meme coin (CAR). Unfortunately, the investor faces substantial losses in his investment.
FOMO fueled investor’s action
Typically, whales in the digital asset market are the focus of attention, as their activity can result in massive profits or substantial losses due to unwise decisions.
Today, Lookonchain spotted a significant incident concerning a whale who suffered over a $1.5 million loss. He made the loss by prematurely investing in a newly launched meme coin called CAR, just before its value plummeted.
Lookonchain data showed this whale spent $1.9 million to purchase 3.6 million CAR coins at an average price of $0.534 for each token. However, due to extreme price declines, the whale incurs a loss of over $1.5 million.
This hasty decision could have stemmed from the investor’s FOMO following the release of the new asset. A few hours later, the token witnessed sudden downtrends in the meme coin market, which is renowned for its wild price fluctuations.
CAR price updates
On January 18, President Trump released his meme coin (Trump coin) in the crypto market and attracted huge interest. The asset’s market capitalization hit $11.74 billion the following day.
Likewise, last Thursday, February 6, Binance launched its meme coin TST, which saw a dramatic rise, with its market cap reaching $52 million within a few hours after initial trading. The two instances show meme coin launches are on the rise.
Today, early morning, Feb.10, The president of the Central African Republic, Faustin Touadéra, shocked the crypto market with unexpected news. The president announced the launch of the country’s supported meme coin CAR.
After the release, multiple investors poured funds into CAR and claimed their positions in the token. The asset’s market cap immediately surged amid FOMO, and climbed to a high of $700 million within a few hours, with its prices rising 2000 times.
At press time, the market cap of the asset is currently trading at $169.09 million, making the asset the 278th largest virtual currency in the entire digital asset ecosystem.
Just like the dramatic release of Trump’s coin, countless investors thought it was wise to give it a try in the CAR meme. CAR’s rollout is just like a replica of the Trump coin’s model: endorsed by the nation, publicized through social media channels, and immediately light up investor sentiment.
When the Trump coin was unveiled, its market cap rose instantly, but prominent whales gradually sold their tokens, causing the asset price to plunge. The CAR coin experiences similar risks.
