Crypto Trader Rakes in $1.6 Million in BNB in One Hour Flipping Obscure Token
A resourceful cryptocurrency trader has netted a impressive $1.6 million profit in less than an hour by capitalizing on the early trading of a little-known cryptocurrency. This incident serves as another example of developers taking advantage of initial price surges.
According to on-chain analysis service Lookonchain, the trader invested a mere 0.24 BNB, equivalent to $138, to acquire a staggering 375.4 billion $PUMP tokens using over 6 BNB valued at $3.48 million. As the price of $PUMP subsequently skyrocketed, the trader sold 360.4 billion tokens for 8,759 BNB, amounting to $5.08 million.
The trader’s swift maneuvering yielded a handsome profit of $1.6 million in less than an hour, and they still possess 15 billion PUMP tokens in their wallet, worth over $200,000.
After $PUMP commenced trading, a savvy investor earned 2,759 $BNB ($1.6M) on $PUMP in less than 1 hour!
They paid a gas fee of 0.24 $BNB ($138) and managed to purchase 375.4B $PUMP at a cost of 6K $BNB ($3.48M).
Then, they sold 360.4B $PUMP for 8,759 $BNB ($5.08M), resulting in a profit of 2,759… pic.twitter.com/8Ah6vGoqWx
— Lookonchain (@lookonchain) March 25, 2024
This event occurred during a period of surging memecoin popularity, where numerous traders have made significant gains from newly launched digital assets. In one instance, a memecoin witnessed an astounding price surge of over 3000% within a 24-hour period, allowing a cryptocurrency trader to accrue a profit of over $123,000 by investing 50 $SOL, which is equivalent to roughly $9,000.
In another case, a trader capitalized on the launch of a Solana-based memecoin, amassing a profit of over $3 million in a mere 12 minutes after placing a bet of nearly $2 million as soon as trading commenced.
In a separate incident, a trader operating under the pseudonym “sundayfunday.sol” transformed a $72,000 investment into an astounding $30 million within just three days of trading a relatively unknown cryptocurrency.
Several users on the microblogging platform X (previously known as Twitter) have speculated that these high-risk traders are either the developers themselves or marketers who manipulate the market to inflate the cryptocurrency’s price, allowing them to sell the tokens at a higher value.
However, not every venture goes according to plan. In one trade, an investor suffered a loss of $46,000 in a mere three minutes when the token they had wagered on experienced a price plummet.
This occurrence underscores several significant aspects unique to the cryptocurrency realm, including the inherent volatility, particularly evident in lesser-known and meme-inspired cryptocurrencies, as well as the liquidity issues that often afflict newly launched tokens, resulting in significant losses due to slippage for traders.
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