A crypto trader has turned a $96 investment into $3 million by trading MAGA (TRUMP) tokens.
According to Lookonchain data, the investor purchased 608,650 TRUMP tokens for 0.052 ETH ($96) on Aug. 12, 2023. At that time, the tokens were trading at $0.0193.
Earlier today, the token’s price rose to $5.30, resulting in over $3 million in unrealized profits. Thus, the trader sold a large portion of the tokens.
What can you do with $96?
This guy made over $3M with only $96, a 32,000x return!
He spent only 0.052 $ETH($96) to buy 608,650 $TRUMP on Aug 12, 2023, and started selling $TRUMP for a profit 6 hours ago.
So far, he has sold 6K $TRUMP for 11.4 $ETH($30K), leaving 594,564… pic.twitter.com/OacHY6a4RW
— Lookonchain (@lookonchain) October 18, 2024
Memecoin Trading and Market Volatility
Sentiment played a major role in this trade, as interest in TRUMP tokens surged with social media buzz and the upcoming US presidential election. The token’s value price spike is emblematic of the speculative nature of meme coins, where favorable market sentiment and timing can drive massive gains or sudden crashes.
Within six hours, the trader sold 6,000 TRUMP tokens, pocketing 11.4 ETH (around $30,000). The trader still holds 594,564 TRUMP tokens, valued at over $3 million, showcasing the potential of meme coins to produce enormous gains.
The traders’ move comes as several memecoin investors continue to take profits. Earlier on Oct. 17, Lookonchain reported that a trader realized over $5 million from trading four coins, with the largest profit coming from trading Pepe Coin (PEPE).
What a smart money!
Made $2.19M on $PEPE, $1.7M on $SPX, $1.37M on $MOG, and $207K on $WOJAK!
1/ Let’s dig into his trades to see what he is buying! pic.twitter.com/s9YMC3ZbhM
— Lookonchain (@lookonchain) October 17, 2024
Similarly, Cryptomode reported how a trader turned a $727 GOAT investment into $2.24 million. This series of profit-takings has spurred speculation of an impending bull rally in the memecoin market similar to what happened in Q1 2024.
The Downside of Memecoins
It’s worth noting that TRUMP tokens, like many memecoins, can experience sharp volatility. Their prices could spike and dump within a few periods, indicating the risks involved in such speculative investments.
The trader’s ability to cash out part of their holdings during the peak highlights the importance of timing in crypto trading. Their decision to hold onto the remaining tokens shows their risk appetite levels.
Currently, TRUMP trades at $5.29, according to Coingecko data, up 2.2% in the last 24 hours.
TRUMP 12-month chart. | Source: Coingecko