FOMO

FOMO stands for fear of missing out. In memecoins it looks simple: a token is up several hundred percent, everyone in the chat is posting gains and you buy because you are afraid the rally will continue without you.

The trouble is that FOMO bites hardest after a big move, exactly when early buyers have the largest profits to take. People buying on FOMO often provide them with exit liquidity. FOMO also fuels scams: countdown timers, “last chance” messages and screenshots of gains are designed to create the kind of rush in which nobody checks the address or the contract's authorities.