Lagos, Nigeria — A cryptocurrency trader has reported a staggering loss of $450,000 after trading a newly launched memecoin, ANT (by Claude), on the Radium automated market maker (AMM) platform. The transaction, which involved the Solana (SOL) cryptocurrency, was completed in a mere 40 minutes, underscoring the extreme volatility associated with memecoins.
During the trade, the trader invested 3,396 SOL, approximately $587,000, to acquire 14.7 million ANT tokens. However, just 40 minutes later, the trader sold the entire position for only 773 SOL, valued at around $134,000. This swift sell-off resulted in a total loss of 2,623 SOL, or roughly $454,000. The incident was highlighted by the on-chain analysis platform Lookonchain on October 24.
ANT Memecoin’s Rapid Rise and Fall
The ANT memecoin quickly attracted attention within the cryptocurrency community due to its unique origin story and perceived real-world utility. Launched on the Solana blockchain, ANT is linked to artificial intelligence through Anthropic Ai’s Claude feature, which allows generative AI technology to operate more like human users. This connection to AI has drawn interest similar to other tokens, such as SLOP, which also gained traction through AI-related initiatives.
However, despite its initial popularity, ANT has faced significant sell-offs. The reasons behind this downturn remain unclear, but it reflects the typical volatility that characterizes the memecoin market. At the time of reporting, ANT is trading at $0.004688, with a market capitalization nearing $4.6 million, down from a peak of $25 million.
Risks of Memecoin Trading
The ANT incident highlights the risks associated with trading memecoins, which are known for their extreme price fluctuations and potential for significant financial losses. Investors are strongly advised to only invest what they can afford to lose, given the unpredictable nature of these assets.
Memecoins, often created with minimal barriers using platforms like Pump. Fun, can attract speculative trading but are also susceptible to pump-and-dump schemes. As the cryptocurrency market continues to evolve, traders must exercise caution and conduct thorough research before engaging in memecoin investments.
