Crypto Trader Incurs $26,820 Loss in 2 Minutes Due to False $TRUMP News

A crypto trader has recently experienced a substantial loss within only a couple of minutes. As per the data from Lookonchain, the crypto trader lost up to $26,820 after the spread of fake news about $TRUMP token, indicating the risks concerning market manipulation via false news. The on-chain analytics provider took to its official social media account to disclose this incident and warn the readers.

Trader Suddenly Loses $26,820 in $TRUMP as Price Plummets after Fake News

Lookonchain’s data brings to the front a malicious market manipulation method that a hacker utilized by exploiting the crypto news platform “db.” After hacking the news platform’s X account, the hacker started spreading false information concerning the $TRUMP token. This led the above-mentioned crypto trader to rapidly leverage the apparent opportunity. Nonetheless, the trader, instead of getting profits, went through a significant loss of nearly $26,820 within a few moments.

The on-chain data reveals that the trader created an exclusive wallet and extracted 504,820 $USDC tokens from Binance. Subsequently, the trader utilized the redeemed funds to buy the $TRUMP tokens. Nonetheless, as soon as the market recognized the falsification of the news, $TRUMP’s price plunged. This forced the trader to immediately offload the token holdings to avoid further losses. Even then, the trader accounted for almost $26,820 in cumulative losses.

High Memecoin Volatility Requires Significant Caution for News Authenticity

According to Lookonchain’s data, this incident works as a clear reminder of the significance of cross-checking the news before making such decisions. Crypto markets, especially the memecoin sector, are considerably volatile and subject to manipulations like this. Keeping this in view, the crypto traders need to be careful and verify the authenticity of the news while making such noteworthy investments.