While holding ETH long-term can bring huge returns, more sophisticated moves can also pay off. One trader recently leveraged fractionalization, a popular trend in 2020, to acquire a rare CryptoPunk NFT valued at $1.5 million for just 10 ETH, or roughly $23,000.
This particular NFT, a rare Ape-themed CryptoPunk #2386, was split into 10,000 shares with 257 owners using a platform called Niftex, which has since been decommissioned. However, the platform's smart contracts remained functional, allowing the NFTâs ownership to still be fractionalized.
On August 28, 2024, a trader proposed a buyout of the NFT by offering 10 ETH as a "shotgun" bid. If no counteroffers were made, the NFT would be transferred to the bidder. Despite attempts to block the buyout, the trader succeeded in acquiring the blue-chip NFT for a fraction of its value, marking another impressive crypto win.
đź ETH-BTC Bet Gone Wrong: A $43 Million Loss**
While some traders make significant profits, others experience devastating losses. On September 14, 2024, blockchain analytics platform Lookonchain flagged a massive loss by early ETH investor and crypto millionaire James Fickel, founder of the Amaranth Foundation. Fickel placed a risky bet, expecting Bitcoin (BTC) to outperform Ether (ETH), but the tables turned against him.
The bet resulted in a staggering $43 million loss, pushing his total debt to $132 million. This loss serves as a reminder that even seasoned investors can face significant setbacks in the volatile world of crypto trading.
đź A Reminder of the Powerâand Risksâof Crypto
The stories of these traders highlight both the massive potential and inherent risks of the crypto market. While a simple buy-and-hold strategy allowed one trader to turn $87K into nearly $40M, others lost millions through more complex bets. In the unpredictable world of crypto, timing, strategy, and sometimes even luck play crucial roles in determining outcomes.
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