Blog 27 – April 2024 – $Fomo & All That Is Wrong With Crypto

Before I get into this properly, I want to start by saying that lately I have begun to feel like all it will take is one large correction for my portfolio to be under water. Or certainly under the invested balance. Whilst this doesn’t worry me financially due to an IRL job which takes up far too much of my time, it would be a bitter pill to swallow with all my research and work put in to date. So I think, where I can, I am going to start taking things off the table. I am quite happy with my existing positions. Lets be honest, the portfolio is currently held together by Akash (AKT), Render (RNDR) and Ethereum (ETH). So selling any of the remaining portions in other tokens seems pointless as they make up a far smaller percentage. I would still buy all these tokens today (maybe with the exception of TIA, Atom,Osmo…).

So having taken $3,400 USDC out (see blog 26), I was starting to think what it would be like to take out the remaining invested amount, all but $100 (so I can still work out an ROI), and have a say $10k-$15k portfolio to play with. Ie playing with the house money….playing with profit….the portfolio becomes one large moonbag where I could potentially take more risks. More risks = more reward right?

As is always the case, whenever I start to feel this way, and move away from the basics I set out in my opening blog, bad decisions follow. Cue, Father of Meme on Base.

Father of Meme $FOMO

This all came about late one night on X as I was doing my every couple of hour sweep of current crypto news to keep up to date. I had noticed one of the larger accounts I followed Tomb (@tombheads) was opening up his telegram of research for a short period for new subscribers. He is heavy into AI plays and the research is thorough and often on projects very early days / low market cap, with plenty of great past calls. He doesn’t seem like a paid shill, and his stuff is posted only for information and at your own risk.

I joined the telegram account and the first few days we were passed on AI projects. All of which are fairly similar to what Tomb posts on X. Then, something different. He dropped father of meme as something to be aware of. This was unusual for someone that has never posted about a meme before. I joined the twitter account of FOMO and scrolled through some of their videos. This was top level animation. A story line you could get on board with. Most importantly, was still relatively unknown and there was a presale for its launch on Base. Presales I had thought are only for those lucky enough in the inner circle. And Base is the new shiny layer 2 on Ethereum with growing users and volume by day. Memecoin money seemed to be rotating from Solana to Base, and I witnessed this first hand with missing out on Brett on Base.

So whilst you cannot ever justify an investment into a memecoin without any utility, I had made an investment case so solid I thought you couldn’t lose:

  • High Quality memes and videos. Father of Memes, so as other Memes grow so too should $FOMO.
  • Actually had a storyline sequence moving through different memecoins.
  • Followed (but not necessarily shilled) by Tomb, Gainzy, VirtualBacon and many others on X. I liked that no one was shilling it to say ‘jump on this’, but rather this looks too good to pass up.
  • It was on Base – which I was yet to have any Memecoin exposure – and a growing userbase.
  • There was a presale. A chance to get in before the masses.

Presale Day

I had made up my mind that I was going to send eth, thats right, send eth to a random address that could be anywhere and get involved in the presale. Obviously the risks are great, so in doing so I created a new wallet 0xB1cC378aa93d855c4b57dd878e5889C032a09072. You could do between .05 eth to 8 eth. I had already seen some suggest they had sent 8 eth. The hype was real. I sent 0.31 eth or close to $1,100 on the 10th April. That $1,100 is what we can now effectively write off….

What Happened

The presale raised $15m in eth in 1 hour. It was after this raise things went quiet for a little bit. The launch then took place on the 17th of April. Loads of people didn’t even have their tokens airdropped before the launch. Some still haven’t been airdropped the correct amount. The thing lists at a MC of $60m with very little liquidity added, so for my tokens to make any money the Marketcap needs to get above $60m.

Not only this, there is the $12-$14m left from the presale eth that hasn’t been used and the team are holding on to. Couple this with any buybacks appearing to just be transferred back to multiple wallets, this has dodgy written all over it. A number of KOLs (key opinion leaders lol) on X who followed have since immediately unfollowed. Why couldn’t they launch at $20m – give the community and their $15m 75% of the total allocation? But instead its been a load of dishonesty and shady dealings by the team right from the get go. A lack of transparency around any real future plans. Whilst we’ve had 6 Cex listings, the community is all but dead. Telegram is loaded with a heap of Bots. Sure there are mods there who are still working for their Bags, but all in all what a waste. The hype has died down and a golden opportunity lost.

I have not sold, but at the current market cap of around $2m, its 1/30th of the original $1,100 investment. Thats like just throwing almost 10% of my total invested funds into the fire. Hard to write but here for full transparency. What a chart below:

What is wrong with Crypto

This could have all very easily gone the other way. More liquidity added at the beginning. Lower allocation taken by the team. Launch closer to and utilise the full $15m raised. But greed got in the way with the team. As it did with my decision to send $1.1k to a random wallet for this presale in the first place.

This is, for all intents and purposes, obtaining a financial advantage by deception by the team. And for me, its getting what I deserved. No one in their right mind would have sent eth to this presale had they known it was all just going to be hoddled away by the team. They were careful not to disclose tokenomics, or anything about how the airdrop would take place prior to launch. But can you just rely on the whole caveat emptor (buyer beware) in this transaction made in good faith? Would a reasonable person invest on these terms were they known? They may also rightly argue that “hey, we are still here trying to make this thing work”. That is true, but how long constitutes good enough before they can call it a day, swan off with the $12m presale eth left and call it a day? A different train of thought, but what if by some miracle the token moons to $100m and they just take the $12m presale eth anyway? Is all forgiven then? Is that ok?

What I think about in situations like this is little Johnny, Gordy, or Cindy who are making their first foray into crypto and end up putting money into something like this. Forget about the people on X who promoted or tweeted about this and then immediately unfollowed afterwards. For what we know any number of these KOLs may have been provided early bags and been able to dump on launch. Its unlikely to make any dent on their positions. Its the newcomers and people this can completely ruin both mentally and financially that I think of. And the sad thing is, anyone who has been in the space long enough would not bat an eye. Because it is happening all the time.

The reality is, as we get more and more entwined into everyday finance and money, future regulation will prevent anything like this from ever happening. It will also, as we are told by KOLs, impact the ability to make the potential life-changing gains these memecoins offer.

Anyway, we are getting off topic. I had a plan. I strayed from the plan. I fucked up and lost $1,100. Another event in my crypto journey I can chalk down to being ‘better for the experience’.


It goes without saying nothing on this site or anything associated with Happy Crypto Wanderer is or should be taken as financial advice. This site tracks the hopeful journey of one everyday punter just trying to live out a dream. Come back here every month so you can track the journey. Any and all feedback is much appreciated. If you feel so strongly that you’d like me to stop at any time, a large enough donation to this wallet so I can reach my goal could make all this disappear.

Leave a Comment

Your email address will not be published. Required fields are marked *