We always hear that the crypto market is very potential and brings life-changing opportunities to many people, and the truth is that it is not difficult to find articles about young crypto billionaires
[1] or a someone becomes rich from investing in crypto
[2]. However, opportunities are not alone but exist with risks. We do not forget that to create huge profits for one investor, there must be many other investors who have lost money. Many assessments even say that up to 90% of investors in the crypto market suffer losses
[3].
Unfortunately, I am not an exception: I am among the 90% in 2022. I also suffered losses on the Credits project in 2018, but at least I successfully stop my loss to focus on other investments. As for FTX, I could not do anything.
Perhaps everyone knows FTX CEX scandal and its once very famous FTT token, but this is my losing journey: I did not buy FTT during the 2021 uptrend because I was not interested in the development of FTX. However, after UST-LUNA collapsed in May 2022, FTX appeared as a hero when it wanted to use its huge budget to rescue troubled companies like Celsius
[4]. This has made me more interested in FTX, and the FTT token price is also well supported at Fibo 0.618, so I believe that the FTT token price has bottomed out and cannot go any lower. I bought 40 FTT tokens at 25 USD without placing stop loss orders because I believed I was lucky to buy FTT tokens at an extremely cheap price compared to its potential.
In November 2022, everything fell apart when FTX was accused of defrauding users of their funds
[5]. Even though I did not use FTX and did not have my assets frozen, the value of my FTT tokens decreased more than 10 times in just a few days. I tried to continue holding but the FTT token price continued to decrease, sometimes even 1 FTT = 1 USD, meaning my investment decreased by 96%. Finally, I sold FTT tokens at 2.5 USD in January 2023, confirming a loss of 90%, equivalent to 900 USD. I chose the right time but put my trust in the wrong token.
This loss really shocked me. I finally understand that we should not put too much trust in any project or individual in this crypto market. Everything can be just a clever play to defraud investors: an exchange that grows too quickly, an individual who becomes famous in a short time... We must be cautious and never forget to set stop loss orders in investing.
I want to hear your unhappy stories in this market:
- Which project/token inflicted your biggest loss?
- What percentage and amount did you lose?
- How did this experience impact your investment journey?
References:[1]
Crypto Billionaires: 11 Individuals Who Struck it Crazy Rich with Cryptocurrencies[2]
From rags to riches: 5 ordinary people who are now crypto millionaires[3]
The Reasons Why 90% of Crypto Traders Lose Money[4]
FTX reportedly considers bailing out Celsius via asset bid[5]
Why Did FTX Collapse? Here’s What to Know
Note:- My opinion was posted first in that topic, on Bitcointalk
- I leave the source link to avoid plagiarism accusation.
- I excluded/ included minor things from an original thread if necessary.