A Recent Crypto Sniping Incident
A recent crypto sniping event has highlighted the dangers involved in using such methods as a trader lost a significant amount. According to data from Lookonchain, a trader incurred a huge loss of up to $465.6K in just 1 hour after 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 indicates that the trader potentially utilized an automated bot for sniping $XZY tokens right after Kanye West shared a post mentioning it. Seizing the moment, the crypto sniper carried out the buyout expecting a potential spike in the token’s price. However, the trader with the wallet address ESeWz…..j9xx6d did not gain any benefit. Instead, this activity resulted in a staggering loss of nearly $465.6K.
Market statistics showed that the outcomes for $XZY tokens were unfavorable, leading to a sudden price plunge. Following this sharp dip, the trader suffered a massive loss of almost 60.3% on their investment. Initially, the sniper had purchased up to $755.7K in $XZY; however, after the rapid price drop, they only managed to recover about $300K of that amount.
Investing in Highly Volatile $XZY Leads to Losses Even after Paying Premium
According to Lookonchain, the crypto sniper also paid a premium of approximately 75 $SOL (equaling $10,000) to JitoTip. Nevertheless, this move did not mitigate the specified losses. This incident serves as a cautionary tale for those who leverage automated sniping strategies for low-liquidity tokens, especially when reacting to trends on social media. The immense volatility of these tokens can lead to significant losses.
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