Crypto trader earns $77 million from a $3k investment
Cryptocurrencies have the potential to revolutionize global financial systems by either reconfiguring transaction mechanisms or serving as a new form of value storage. Despite the increasing institutional adoption and mainstream appeal witnessed in recent years, it is important to note that these factors are still in their early stages. The primary drivers in this emerging space are speculative investments.
Although instances of traders turning small amounts of money into significant wealth have become less common as the industry matures, they still occur. Lately, most of these trades have involved meme coins, which are associated with risky, short-term strategies.
However, playing the long game can still lead to significant gains if one knows what they are doing. In mid-April 2023, a trader exchanged a variety of other coins and tokens worth $3,000 at the time for 4.91 trillion units of the meme coin Pepe (PEPE).
As of now, PEPE is trading at $0.00002513, a remarkable 8,276% increase from the $0.00000030 price when the trader acquired it in December 2023.
Although meme coins like PEPE are not known for their stability, this trader has managed to steadily cash out on their initial bet, locking in millions of dollars’ worth of profit, with the potential for millions more. Here is how they did it.
On April 25, 2023, the trader exchanged 20,000 Liquidity Incentive Tokens (LIT), worth $2,256 at the time, for 3,407,945,165,404 PEPE. Less than half an hour later, they sold 0.1 Ethereum (ETH), worth $210 at the time, for an additional 457,332,932,276 PEPE. Fifteen minutes later, they exchanged 500 USD Coins (USDC), worth $499, for 1,048,914,082,342 PEPE.
In total, the trader spent $2,965 to acquire approximately 4.91 trillion units of PEPE, according to data retrieved by Finbold from Etherscan. Since then, the trader has consistently been selling off their stake, selling roughly 3.03 trillion PEPE for a profit of $27.5 million.
On December 9, an additional 100 billion PEPE were sold for approximately $2.8 million, bringing the trader’s realized gains to roughly $30.3 million.
The trader’s address still holds 1.88 trillion PEPE, bringing the remaining stake’s worth to approximately $47,414,400. If this stake were to be liquidated all at once at the current prices, the trader’s total profit would increase to $77.7 million.
Featured image via Shutterstock.
