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TL;DR
A trader turned a $96 meme coin investment into a paper profit exceeding $3 million. However, investors should be cautious when jumping on the bandwagon due to the notorious volatility of memes, which could lead to devastating losses.
What a Trade…
Meme coins have become a significant part of the cryptocurrency world, emerging frequently and often 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 trader 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.
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.
An earlier report shared 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).
Conclusion
While investing in meme coins during the current bull run may seem appealing, it is crucial to remember that they are known for their notorious volatility. Therefore, traders should be extremely cautious when jumping on the bandwagon and invest only as much as they are ready to lose.
FAQs
- Q: What is the current price of TRUMP?
A: The current price of TRUMP is $5.25.
Q: What is the current price of WIF?
A: The current price of WIF is not mentioned in this article.
Q: What is the current price of SHIB?
A: The current price of SHIB is not mentioned in this article.
Q: What is the difference between 2,500 and 6.7 million?
A: 6.7 million is a staggering difference, indicating the immense potential of meme coins.
