A cryptocurrency investor has managed to turn a little over $1,000 into a $325,900 fortune in just 18 hours by trading several newly launched tokens on the Ethereum (ETH) blockchain and taking advantage of Binance’s recent settlement with U.S. regulators.
According to on-chain analyst 0xReflection, the trader whose wallet starts with 0xafbd managed to score a significant gain investing in a token named after Binance founder Changpeng Zhao, $CZ, with the token’s price surging after he was found guilty and stepped down as Binance CEO.
Earlier this week, Binance agreed to pay one of the largest corporate penalties in U.S. history after a coalition of federal regulators accused the exchange of breaking sanctions and money-transmitting laws.
The exchange will pay regulators $4.3 billion to settle, and CZ agreed to resign from his role and admit to felony criminal charges of money laundering. As a result, numerous coins using CZ as a ticker started appearing, and the investors managed to invest in one that surged exponentially to generate over $220,000 in profit.
Reflection noted that in the cryptocurrency space when there’s a significant development, a cryptocurrency with a matching name is soon launched, and its price skyrockets shortly after. The trader’s gains were notably also boosted by pepecoin, a meme token that helped them make over $60,000.
Various investors have lately been managing to make fortunes off of small balances on-chain, with a trader recently managing to turn around $98 worth of cryptocurrency into a massive $1.1 million in just over 90 days, an achievement that is verifiable on the blockchain and suggests deep market knowledge.
The analyst 0xReflection noted that while the investor has shown good results,” mindless copying of trades” won’t allow investors to make the same returns and could lead to losses.
Featured image via Unsplash.
