Crypto influencer loses 8 million in a month from 15 million investment
In the last 24 hours, the cryptocurrency market experienced a significant downturn, leading to crashes in most cryptocurrencies. An influential figure in the crypto world and a supporter of Ethereum (ETH) currently finds themselves facing unrealized losses of $8 million with the ERC-20 token FRIEND.
The pseudonymous influencer known as Machi Big Brother, boasting 164,400 followers on X, has suffered losses of over 50% with FRIEND. Lookonchain, a platform that tracks crypto transactions, recently highlighted the losing position of this account in a post dated June 8.
Machi Big Brother, also known as @machibigbrother, began purchasing $FRIEND on May 3. With a total investment of 4,975 ETH (equivalent to $15.6 million), the influencer acquired 8.6 million $FRIEND tokens at an average price of $1.81. Unfortunately, with the current value of the token, Machi Big Brother has incurred losses amounting to $7.9 million.
According to reports from the on-chain analyst, Machi Big Brother has been actively buying FRIEND since May 3. The influencer accumulated 8.6 million tokens, spending $15.6 million in total, at an average price of $1.81. However, the market downturn has led to a 55% decrease in the value of this investment.
As of the latest data, FRIEND is trading at $0.808, marking a 60% decrease in its value over the past month. Consequently, Machi Big Brother’s position is now worth $6.95 million, reflecting a loss of $8.65 million in just over a month.
Renowned cryptocurrency trader Ansem has characterized FRIEND as a meme coin and a “culture coin,” emphasizing its unique ecosystem. Ansem shared this perspective on X on May 4, indicating that he may have been building a position on the token around the same time as Machi Big Brother.
The token experienced a surge in social volume and price in early May, as per data from Santiment. However, this hype was short-lived, and the token has since been facing losses as interest from crypto influencers dwindles.
Meme coins, such as FRIEND, pose significant risks due to their speculative nature. These coins often lack intrinsic value and rely heavily on social media hype for price movements. Investors who engage in meme coins are essentially speculating and hoping to sell at a profit to other buyers, aligning with the “Greater Fool Theory.” This theory suggests that profits can be made from overvalued assets, but it also highlights the risks involved if demand diminishes.
When the hype subsides and demand decreases, investors may find themselves holding assets of little value, resulting in substantial financial losses. As such, investing in meme coins should be approached with caution, considering the volatile nature of these assets.
Disclaimer: The information provided in this article should not be construed as investment advice. Investing in cryptocurrencies is speculative, and there is a risk of losing your capital.