One trader astonished the community by turning a modest amount of 1,900 dollars into 3.67 million dollars in less than two hours, thanks to the soaring price of ELIZA, a meme-inspired token traded on the Solana blockchain.
The trader's strategy began with an investment of 7.84 SOL, worth 1,900 dollars, to purchase 89.19 million ELIZA tokens through the decentralized exchange Raydium. As the price of ELIZA began to soar, the trader quickly sold 49.49 million tokens for 7,091 SOL, earning 1.72 million dollars at the time of sale.
Notably, the address still retains 39.7 million ELIZA tokens, worth approximately 1.95 million dollars. Along with the realized profits, the total profit reaches 3.67 million dollars, reflecting an astonishing return of 1,925 times the initial investment, according to data collected from Solscan and Lookonchain on November 19.
ELIZA skyrockets
The surge of ELIZA is considered spectacular. The market capitalization skyrocketed to 61.35 million dollars, while liquidity stood at 2 million dollars. In the past 24 hours, trading volume exploded to 173 million dollars, a clear sign that this token is 'making waves' in the market.
After the initial price surge, ELIZA showed some signs of consolidation, with clear selling pressure on the latest charts. Notably, the trader who achieved this astonishing profit continues to sell aggressively, indicating that the price surge may still attract attention but also poses risks for latecomers.
Divergent views from the community
News of the trader's extraordinary profits quickly spread and ignited heated debates on platform X (formerly Twitter). While some admire and see this as a clear testament to market timing prowess, many others question the insider trading behavior.
Critics argue that the initial price behavior of ELIZA, when it 'dropped two zeros within minutes after minting,' nearly eliminated the chance for regular investors to profit early. One user bluntly remarked:
"It takes about 50 minutes for an average person to actually buy. This trader is either an insider or tax evading."
Risks of trading memecoins
The success of this trader is impressive but also serves as a reminder of the high-risk nature of memecoin trading. Tokens like ELIZA often rise rapidly due to speculation, but their volatile nature can lead to steep declines as traders take profits.
Many projects in this group also face scrutiny for lack of transparency, raising concerns about fairness in the initial distribution and trading activities.
Currently, the story of ELIZA is a vivid testament to the instability in the world of memecoins. Despite attracting significant interest, the future of ELIZA remains unclear. Will it continue to maintain its growth momentum, or will it become a costly lesson for late investors? Time will tell.
