Despite the ongoing short-term bearish trend in the cryptocurrency market, experienced traders are finding strategies that allow them to make significant profits by multiplying their investments in the shortest possible time.
For example, data that was shared Lookonchain In a post on August 1, X reported that a crypto trader turned a modest $8,000 into an incredible $800,000 in just one hour.
This achievement was realized through trading on the Raydium protocol, capitalization of the launch of a new meme coin by the CTO platform MakeNow.Meme. The platform allows creating meme coins from X posts.
The trader initially invested 50 Solana tokens (SOL), roughly $8,500, to purchase 256.8 million CTO tokens, becoming the third address to do so. Within an hour, the trader sold 227.67 million CTO tokens for 4,771 SOL, equivalent to roughly $811,000.
The unknown trader made a staggering profit of 4,721 soles or $802,500, which is 94 times the initial investment.
Interestingly, this was not the investor’s only success. Eleven hours earlier, the same trader made a significant profit on PFI, another token on the Raydium protocol.
By investing 20 Sol (around $3,400) in PFI, the trader earned 612 Sol (around $104,000), achieving a 30x gain.
Trading Meme Coins and the Risks Associated with It
These early gains highlight the volatile but potentially lucrative nature of the cryptocurrency market, especially for those who get into meme coins early. However, the risks associated with such trades are significant, especially considering that meme coins like CTO have no fundamental value.
Notably, such trades have increased in recent months following the emergence of popular meme coins. As Finbold reported in May, a crypto trader turned $800 into $657,000 in five hours in a trade involving Solana and Mother Iggy (MOTHER).
CTO is currently trading at $0.00466, with a market cap of around $4.6 million and fewer than 4,000 holders.
In contrast, Solana is bearish in the short term. At press time, SOL was trading at $168, down over 8%. The recent sell-off has thwarted SOL’s attempt to reclaim the $200 resistance level.
To sum it up, trading both established assets like Solana and new meme coins requires careful timing and thorough research.
Denial of responsibility: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
