A cryptocurrency trader has managed to turn 500 Solana ($SOL) tokens worth around $67.000 into 5,789 SOL worth over $780,000 in just 15 minutes after managing to “snpe” a large portion of a newly launched cryptocurrency’s supply.
According to on-chain analysis service Lookonchain, the cryptocurrency ‘sniper’ managed to acquire 665 million $QUACK tokens as they first started trading, and later sold the tokens for a significant profit of over $700,000 as its price surged, before the dump led to a downturn.
This sniper turned 500 $SOL($67K) into 5,789 $SOL($781K) in just 15 minutes!He spent 500 $SOL($67K) to snipe 665M $QUACK(15.83% of the total supply) the first time $QUACK opened trading.Then sold it for 5,789 $SOL($781K), making a profit of 5,289 $SOL($714K) ).… pic.twitter.com/56V2oOhSKo
— Lookonchain (@lookonchain) April 30, 2024
The cryptocurrency ‘sniper, as Lookonchain referred to them, is likely to be an insider in the project, as insiders have over the current cycle been taking advantage of memecoin token launches to first pump up their prices, and score massive wins in the process.
As CryptoGlobe reported, the team behind a project recently managed to turn just over $6,400 worth of cryptocurrency into over $8.28 million in a single day through the launch of such a meme-inspired cryptocurrency.
In another case, a trader turned an initial investment of $49,000 into nearly $2 million within just five hours with a newly launched memecoin as well. While insiders have been benefitting, the wider memecoin trend has seen traders 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. The 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 due 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,” turned a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.
Featured image via Pixabay.
