Today has been a crazy day in crypto. If you head on to crypto twitter, you'd probably not be able to miss what I'm to discuss here as it is literally, all over twitter.
Apparently, a Solana-based shitcoin dev accidently burned $10 million of presale investments in the shitcoin $SLERF and guess what happened next?
That's right, shit pumped to over $1 billion in marketcap.
Initially everyone was just laughing at the dumb mistake the dev made, here and there, until them degen mfs decided that this is bullish af.
I mean, that much liquidity is already locked in, control revoked, and presale tokens that should have been sent to early investors - burned, that simply leaves the shitcoin to a fair launch with nobody sitting on huge presale stacks to dump, so, SEND IT TO THE MOON!
Not gonna lie, if I was liquid on Solana, I would have aped in, but I wasn't, I don't think I've ever made a transaction on that chain because I've never had a reason to.
That said, it doesn't change the fact that such action would be a huge gamble.
In fact, a certain address already sold at a $700k loss for buying at the top. But this will be underreported, compared to the wave of highlights on profits made and market volume.
This Is Only The Beginning
There's been a lot of presale scams lately and lots of shitcoin releases, the industry focus(at least that of hungry fellows sitting on cash) has moved from hunting airdrops to joining presales and buying shitcoins.
We are after all in what one would call a bull run, hence, this is only the beginning.
The likelihood of seeing more shitcoins hitting billions in marketcap is extremely high and while the vast majority would want a piece of the pie, it's important to understand that every event of such has more losers than gainers.
In the case of SLERF, the first losers that should be obvious are the presale investors. On a normal day, they should be the gainers but sadly, dev decided not today.
But what you'd rather notice is that everyone is simply laughing off this loss and speculating on how bullish it is overall, taking a victory dance on a freaking $10 million loss.
In addition to this, whilst some addresses will turn a huge profit here, the figures will be small compared to losers.
The world tends to let greed blind it so much that it doesn't realize that value cannot be destroyed. Fact is, one might argue that it is neither created, just simply made way for.
So if I win a million dollars trade, that simply means that someone or a group of people have lost a million dollars, but most people will celebrate me and not even realize that this money didn't come out of thin air, it's a transfer of wealth, all the time.
So everyone winning on SLERF is at the cost of many others losing.
Call me the PARTY POOPPER :)
Choose Long Term Investments, Every Time
Make no mistake, if you have to chase shitcoins, you have to understand it's a bigger gamble than chasing crypto investments with teams developing products and services.
Whilst, all are a gamble and all have more losers than gainers, the dynamics of investments with actual developments is that it compounds when played long term.
This means that it lasts long enough for more people to benefit than lose. This cannot be said for shitcoins as the hype tends to die off quickly with few great gains and massive losses.
It's exciting and all, but at the end of the day, it's the fastest way to lose money that would have been put in a compounding investment asset.
Gamble with what you can afford to lose, invest in what compounds.