On-Chain Data Tracking Platform Discovers a Typical Market Risk Case. On January 7th, an investor made a move when a certain token surged to its peak, spending 250,000 USDT to buy 8.54 million tokens in one go. At that time, the judgment might have been based on short-term upward momentum, wanting to ride the wave.

But what happened next is a textbook-level market reality. Just 14 hours later, the token began to plummet rapidly. The position that was once worth $250,000 is now only $34,380, a drop of an astonishing 86%. What does this mean? A loss of $215,600 just vanished into thin air.

This case reflects a well-known but often repeated pitfall: chasing high during a rally often marks the beginning of becoming a bagholder. The token market is highly volatile, especially for some new tokens, where prices can change instantly. Whether bottom-fishing or chasing highs, the risk is always there, just waiting for you to experience it.

For cryptocurrency investors, the lesson from this story is straightforward: controlling risk is more important than pursuing profits. Position management, stop-loss settings, and the ability to judge market rhythm—these are the keys to long-term survival.