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Crypto Recovery Lessons: Why an 87% Drop Needs an 800% Gain in Meme Coins

Crypto Recovery Lessons: Why an 87% Drop Needs an 800% Gain in Meme Coins

In the fast-paced world of meme coins, where prices can skyrocket or plummet in hours, understanding the math behind recoveries is a game-changer. A recent tweet from @narkokek shared a clip from @crimexbt that nails this point: "An 87% drop needs an 800% move to recover. Remember how hard it is for something to go up and how easy it is for something to go down."

Let's break this down simply. Suppose you invest $100 in a hot new meme token, and it drops 87%—now it's worth just $13. To get back to your original $100, that token doesn't need to gain 87%; it needs to climb about 669% (close to the 800% mentioned, perhaps rounded for emphasis in volatile charts). The key takeaway? Losses hurt more than gains help because percentages work against you on the way down. This asymmetry is why seasoned traders stress cutting losses early.

This wisdom comes from a full episode on YouTube titled "Crime season EP01 - Degen DLMM - English," where @crimexbt dives into risk management using Meteora's Dynamic Liquidity Market Maker (DLMM) on Solana. DLMM lets you provide liquidity in specific price ranges, earning fees while hedging against wild swings—perfect for meme coins that can rug or pump unpredictably.

In the video, @crimexbt shares his Meteora Challenge journey, turning 1 SOL into 118 SOL over a year, despite setbacks like a "great rug" that knocked him back. He emphasizes wide liquidity ranges (80-90% below current prices) to stay in the game during dips, avoiding the trap of narrow positions that get knocked out easily. For meme enthusiasts, this means focusing on quality narratives—original ideas that build community hype—rather than chasing every Pump.fun derivative.

Tools like Dexscreener help spot these setups, but @crimexbt warns against over-relying on scanners; instead, tune into social vibes on X or Discord. And for liquidity providers in the LP Army community, it's about patience: don't force trades, layer positions wisely, and always calculate your downside protection.

If you're dipping into Solana memecoins, check out the full video here for more on bid-side pools and why Meteora beats spot trading for risk-averse degens. Join the conversation in LP Army's Discord to level up your strategy—because in memes, knowledge is your best armor against the rug.

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