A crypto trader who previously made a staggering $2.9 million profit trading the TRUMP token has now suffered a devastating $1.8 million loss after investing in the Central African Republic Meme (CAR) token.
According to on-chain data earlier today, the trader purchased 3.95 million CAR tokens at an average price of $0.49 following an announcement by the President of the Central African Republic.
However, within just 24 hours, CAR experienced a massive 96% crash, reducing its price to $0.03063.
The incident left the trader with a 92% unrealized loss, demonstrating the extreme volatility and unpredictability of meme coin investments.
The incident serves as another cautionary tale in the speculative world of cryptocurrency trading, where fortunes can be made and lost overnight.
CAR Token’s 96% Price Collapse and Market Shock
The CAR token initially gained traction due to its perceived link to the Central African Republic, drawing in investors eager to capitalize on its hype.
However, the excitement was short-lived as the token plummeted by 72.9% within a day, leading to significant losses for those who had invested at higher prices.Â
Despite briefly recording gains earlier in the week, the dramatic sell-off shattered investor confidence.
As of today, CAR’s trading volume stands at $188.7 million, indicating ongoing market activity despite its sharp decline.
The token’s collapse raises broader concerns about politically associated meme coins, which often experience unpredictable price movements driven more by sentiment than actual utility or value.
The Risks and Rewards of Meme Token Trading
The trader’s loss on CAR serves as a stark reminder of the speculative nature of meme tokens, which can produce massive gains but also catastrophic losses.
While his earlier $2.9 million profit from TRUMP highlighted the earning potential of meme coin trading, the $1.8 million loss on CAR underscores the inherent risks of chasing hype-driven tokens.
Other traders have faced similar fates, including one who lost $1 million within hours after opening a $2.5 million long position on the BERA memecoin.
Meanwhile, another trader turned $5,000 into $12 million by capitalizing on CAR’s initial surge, securing a 2,450x return in just three hours.Â
These contrasting experiences illustrate the highly volatile and speculative nature of meme tokens, where timing can mean the difference between financial success and ruin.
Lessons from CAR’s Crash and Broader Market Implications
The collapse of the CAR token highlights the importance of due diligence and risk management when trading cryptocurrencies, especially meme coins.
While traders are often drawn to the potential for quick profits, these tokens frequently lack strong fundamentals, making them highly susceptible to drastic price swings.
The recent series of major wins and losses in the crypto market, including the BERA token’s volatility, further emphasizes the need for careful strategy.
One trader successfully shorted BERA after its listing, turning 1.6 million USDC into 2.19 million USDC as the token’s price fell from $13 to $7.56.Â
These cases showcase the dual nature of meme token trading—while some capitalize on volatility for massive gains, others suffer severe losses due to miscalculations or market unpredictability.
For investors, the CAR token crash reinforces the importance of approaching such trades with caution and a well-defined risk strategy.
Also Read: Crypto Trader Flips $900K $ENRON Token Trade To $5.3M, Nets $4.4M Profit In 30 Minutes