Outside Source
TL;DR
- A trader turned a $96 meme coin investment into a paper profit exceeding $3 million.
- However, investors should pay attention when jumping on the bandwagon due to the infamous volatility of memes, which could lead to devastating losses.
What a Trade…
Meme coins are an exciting part of the cryptocurrency world and have become quite trending during the latest bull cycle. They pop out quite frequently, with some witnessing astonishing price increases in a short period of time. As such, memes have caught the eye of savvy traders who are always on the lookout for quick fortunes.
The blockchain analytics platform Lookonchain revealed the case of one such person who purchased over 600,000 TRUMP tokens in August last year. The asset (linked to presidential candidate Donald Trump) was worth less than $0.01 at the time, and the trader accumulated the stash for a mere $96.
However, the meme coin’s value exploded in the following months, benefiting those who entered the ecosystem in the early days.
Several hours ago, the aforementioned trader sold 6,000 TRUMP for approximately $30,000. They now have 594,564 tokens left, meaning they sit on a paper profit of a whopping $3.06 million.
Numerous X users commenting on the post congratulated the trader for the successful investment, with some noting that the profits would have been even more remarkable if the person had sold the stash earlier in 2024. Recall that TRUMP was worth over $17 at the beginning of June, while currently, it hovers around $5.25.
Other Successful Meme Coin Trades
TRUMP is not the only meme coin to have skyrocketed substantially in the past several months, thus positioning the investments of savvy traders well in the green. An evident example is the Solana-based dogwifhat (WIF), which was crypto’s rock star at the beginning of 2024.
Earlier this year, CryptoPotato reported that one trader purchased 2.58 million WIF tokens with only $310 worth of Solana (SOL) in November 2023. Should they decide to cash out, the profit would equal a staggering $6.7 million (as of the moment).
Another trader spent approximately $2,500 to purchase almost 50 billion Shiba Inu (SHIB) tokens in 2021. In March this year, they withdrew over 80% of the total stash and deposited it into Coinbase. Had they sold, the profit would have equaled more than $1.5 million (at that time).
While investing in meme coins during the current bull run may seem appealing, it can also lead to significant losses because of their notorious volatility. Having that said, traders should be extremely cautious when jumping on the bandwagon and invest only as much as they are ready to lose.
This article first appeared at CryptoPotato
