A cryptocurrency trader has managed to turn around $13,000 worth of the second-largest cryptocurrency by market capitalization, Ethereum ($ETH), into over $2 million by trading a little-known meme-inspired cryptocurrency on Coinbase’s Layer-2 network Base.
According to on-chain analysis service the trader manage to turn the $13,000 into over $2 million in less than an hour after spotting Donotfomoew ($MEOW) on the network around 10 minutes after it started trading, and quickly spent 4 ETH to buy nearly 500 million tokens of the cryptocurrency.
After the price of $MEOW started surging, the trader sold 111.65 million tokens for 99 ETH, worth around $328,000, and still holds over 388 million meme-inspired tokens worth over $1.75 million.
In less than 1 hour, this guy turned $13K into $2M, a gain of 158x!He spotted $MOEW 10 minutes after opening trading and spent 4 $ETH($13K) to buy 499.9M $MOEW.Then he sold 111.65M $MOEW for 99 $ETH($328K).He currently holds 388.24M $MOEW, worth $1.76M.… pic.twitter.com/DFRGOYh8ZM
— Lookonchain (@lookonchain) April 3, 2024
Notably, the trader comes shortly after another cryptocurrency trader managed to turn just 0.1 ETH into over $8.3 million on Base in less than a week by trading little-known cryptocurrencies with market capitalization below the $5,000 mark.
That trader, according to Lookonchain, also trade meme-inspired cryptocurrencies on Ethereum, but hasn’t found the same success they do on the network. As CryptoGlobe has been reporting, the recent memecoin trend has been seeing trader make – and lose- fortunes in relatively short amounts of time.
One trader, for example, managed a loss of $46,000 in just three minutes after the price of the token, Milady Wif Hat ($LADYF) plunged. he incident highlights several key factors native to the cryptocurrency space, which include the volatility inherent to it that’s especially present in lesser-known and meme-inspired cryptocurrencies, and the liquidity issues that these newly launched tokens can have, forcing traders to suffer significant losses to slippage.
In another case, a memecoin saw a dramatic price rise of over 3000% over a 24-hour period, and a cryptocurrency trader managed to take advantage by betting 50 $SOL, worth around $9,000, in the cryptocurrency. Its rise has seen them make a profit of over $123,000.
In another case, a cryptocurrency trader managed to make a profit of over $3 million trading a newly launched Solana-based memecoin within just 12 minutes after betting nearly $2 million on it right after it started trading.
In yet another incident, a trader, identified on-chain by the alias “sundayfunday.sol,”turn a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.
Various users on the microblogging platform X (formerly known as Twitter), have suggested that the traders making such high-risk investments in these newly launched cryptocurrencies are the developers behind them or marketers helping pump the cryptocurrency’s price up so they could later sell the tokens at a higher value.
Featured image via Unsplash.
