Crypto Trader Loses $60K in Two Hours on New AI Token MPLX
A crypto trader reportedly lost $60,000 in just two hours on Tuesday, after succumbing to FOMO (Fear of Missing Out) while trading a newly launched AI token, Miniperplx AI (MPLX).
Details of the $60K Loss in the AI Token MPLX
The incident, reported by the on-chain analytics platform Lookonchain, highlights the risks involved in investing in hyped crypto projects without a sound trading strategy.
Don't make the same trade mistake twice!
This trader entered $MPLX twice due to #FOMO during the price surge, and then panic-sold when the price plummeted, losing $59K in just 2 hours.https://t.co/p1XSQc53Tk pic.twitter.com/zxKflCvkqt
— Lookonchain (@lookonchain) January 7, 2025
On January 7, Lookonchain reported that the trader made impulsive decisions, leading to substantial losses.
The trader initially purchased $31.8K worth of MPLX tokens at their peak price of $0.02499.
However, the token’s value quickly declined, leaving the trader with $12.8K and a $20K loss.
Undeterred, the trader reinvested $30.5K during another price surge, but the token’s value plummeted again, resulting in further losses.
In total, the trader lost $60,000 within two hours. This loss, according to community members, might have been mitigated by a more patient approach.
MPLX’s Performance and Market Volatility
Despite the initial price surge, MPLX has entered a downtrend.
Currently trading at $0.001799, the AI token has a market capitalization of $1.7M.
While the price has cooled, trading volume remains high at $76.1M, indicating sustained market interest in this new AI project.
MPLX experienced a dramatic 1200% increase in the last 24 hours. However, this extreme volatility underscores the risks for investors chasing quick profits.
As speculative interest continues to drive the market, experts recommend thorough research and a disciplined approach when trading, especially with newly launched tokens like MPLX.
Lessons From the AI Token Incident and Trading Tips
While new cryptocurrencies often present opportunities for high returns, their inherent volatility can lead to substantial losses without proper risk management strategies.
Let me explain how fomo on the timeline works:
> High conviction participants position heavily in core bags
> Every few weeks a new meta forms
> The pump rotates
> People pre-positioned into said meta become euphoric
> They bullpost their bags relentlessly; feeling vindicated…
— Doc (@docXBT) December 4, 2024
As the market continues to be driven by speculative interest, experts advise that investors exercise caution when trading, particularly with newly launched tokens.
Crypto markets can be rewarding, but without the right tools and knowledge, losses like the one this trader experienced are all too common.
You might also like 7 Best Risk Management Strategies For Trading Crypto
Source: cryptonews.com
