Solana Trader Loses $892K in FOMO

• FOMO can undermine investment decisions.
• ALON and VINE suffered heavy losses.
• Trump's Executive Order Fueled Risky Trading.

A Solana (SOL) investor has lost nearly $900 after trading 13 tokens at a rapid pace, according to tracker Lookonchain. In just two days, he lost $892 after making decisions based on FOMO (Fear of Missing Out).

Please don't FOMO.

Someone withdrew 4,248 $ SOL ($1.06M) from exchanges to trade, and has lost $892K!

Over the past two days, he traded 13 tokens, only one trade made a tiny $231, while the rest were all losses—an almost 0% win rate.

He lost $456.4K on $ALON and $254.5K on… pic.twitter.com/MJqd68lrgq

— Lookonchain (@lookonchain) January 24, 2025

The trader withdrew 4.248 SOL from exchanges, valued at $1,06 million, to trade on the back of Donald Trump’s crypto executive order. However, only one trade generated $231 in profit, while the rest resulted in significant losses.

At the time of publication, the price of Solana was listed at US$265,56, up 5.6% in the last 24 hours.

Trading with ALON and VINE caused the biggest losses. ALON generated a loss of US$456.400 and VINE, US$254.500, showing that choices without in-depth analysis can compromise a large part of the capital in a short period of time.

While some participants saw significant gains from trading TRUMP and MELANIA tokens, others faced adverse results. Trump’s move sparked immediate interest, but soon saw the TRUMP token drop 51% and MELANIA drop 80% after peaks in value.

This guy has sold all $MELANIA, making a total profit of $42.7M(62x)!

He spent 2,500 $ SOL ($688K) to buy 5.2M $MELANIA at $0.13, and sell all of them at an average price of $8.34 for $43.4M, making a profit of $42.7M, a 62x return! https://t.co/UFCfTsAwT3 pic.twitter.com/EJhcfVI9H5

— Lookonchain (@lookonchain) January 23, 2025

In a recent speech, Donald Trump commented:
“I don’t know much about it other than I launched it, other than it was very successful.”
He also downplayed the billions of dollars involved:
“A few billion – that’s peanuts to these guys.”

The backlash led CoinCorner CEO Danny Scott to criticize the launch:
“Trump’s comments about not knowing much about the currency confirm my belief that he is making a mockery of the industry. It’s a farce.”

Still so , Jeff Dorman, an analyst at an investment firm, sees another perspective:
“The TRUMP token has just signaled to every company, municipality, university, and individual brand that crypto can now be used as a capital formation and customer incentivization mechanism.”

Despite the initial enthusiasm, the Solana trader’s story reinforces the importance of studying projects before participating in the market. Movements based solely on excitement often have unfavorable consequences, especially in the scenarios of newly launched tokens.