Savvy Trader Made a 400% Profit With This Trending Meme Coin: Details
TL;DR
A trader made a significant profit by buying and selling a new Telegram-related meme coin called DOGS.
Earlier this month, though, another trader lost nearly $900,000 on a Trump-themed meme coin, highlighting the high-risk nature of the sector.
The Substantial Profit
The ever-evolving meme coin sector has been one of the highlights of the crypto industry in the past several months, spewing new tokens quite frequently.
One of the latest is Dogs (DOGS), an asset associated with the Telegram community, which saw the light of day approximately a week ago. Initially, the meme coin was available for trading on certain decentralized exchanges, while leading platforms like Binance, ByBit, and OKX added it shortly after.
The enhanced volatility of meme coins (especially during their first days of trading) sometimes results in significant profits for savvy traders who pick the right moment to jump on the bandwagon. The crypto analytics platform Lookonchain revealed the case of one entity that made a profit of over 400% by dealing with DOGS.
The trader spent $18,400 worth of TON to purchase 55.9 million DOGS tokens following numerous transactions on August 26. Shortly after, they sold 20 million coins for 6,140 TON (approximately $34,600) and deposited the remaining stash (equaling around $61,000) to a centralized exchange. If they sold all DOGS tokens upon depositing, their total profit would be more than $77,000.
Some X users commenting below the post noted that the buying spree happened mere hours before the listing on Binance, wondering how the trader knew about this upcoming move.
Another industry participant was left puzzled by how the trader conducted the transactions on the cross-chain DEX Ston.fi, claiming that it was congested for four hours on August 26 and swaps were unavailable.
When Meme Coin Trading Goes the Other Way
The volatile nature of the meme coin sector makes entering the ecosystem quite dangerous and sometimes leads to devastating losses for traders.
Earlier this month, one investor spent over $900,000 to buy 7.2 million Restore the Republic (RTR) tokens. The trader jumped on the bandwagon when the valuation of the Trump-related meme coin exploded upon launch. However, the token’s price crashed just as substantially shortly after. In the aftermath, they sold the stash for only $18,000.
The unsuccessful trade should serve as a warning that individuals must conduct thorough research before dealing with meme coins and invest only as much as they are ready to lose. For additional helpful advice, you can check out our detailed video below:
The post Savvy Trader Made a 400% Profit With This Trending Meme Coin: Details appeared first on CryptoPotato.
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