A cryptocurrency trader has managed to turn just 0.1 Ether ($ETH) into over $8.3 million on Coinbase’s Layer-2 scaling solution Base in less than a week by trading little-known cryptocurrencies with market capitalization below the $5,000 mark.
In a post shared on the microblogging platform X (formerly known as Twitter) on-chain analysis service Lookonchain detailed the story of pseudonymous cryptocurrency trader Larp von Trier, after the trader said they would be hunting for tokens on Base with small market capitalizations
One of their first trades was on a meme-inspired cryptocurrency called Keyboard Cat ($KEYCAT) at a time in which it had only been online for two days and a market capitalization of $2,200. The analyst bought 13.16% of its supply with their 0.1 ETH. The trader then sold 344.7 million tokens for 497 ETH worth over $1.75 million after the price of the cryptocurrency exploded.
Larp von Trier still has 971.2 million tokens, 9.71% of the cryptocurrency’s total supply, in over six wallets, with the total amount being worth $6.64 million.
The trader also bet on other cryptocurrencies on Base, including $NORMIE and $NORMILIO, but ended up losing $820 on the first and $9,700 on the later before being successful with $KEYCAT.
According to Lookonchain, the traders also trade meme-inspired cryptocurrencies on Ethereum but haven’t found the same success on the network. As CryptoGlobe has been reporting, the recent memecoin trend has seen traders make—and lose—fortunes in relatively short amounts of time.
One trader, for example, managed a loss of $46,000 in just three minutes after the price of the token, Milady Wif Hat ($LADYF) plunged. The incident highlights several key factors native to the cryptocurrency space, which include the volatility inherent to it that’s especially present in lesser-known and meme-inspired cryptocurrencies and the liquidity issues that these newly launched tokens can have, forcing traders to suffer significant losses due to slippage.
In another case, a memecoin saw a dramatic price rise of over 3000% over a 24-hour period, and a cryptocurrency trader managed to take advantage by betting 50 $SOL, worth around $9,000, in the cryptocurrency. Its rise has seen them make a profit of over $123,000.
In another case, a cryptocurrency trader managed to make a profit of over $3 million trading a newly launched Solana-based memecoin within just 12 minutes after betting nearly $2 million on it right after it started trading.
In yet another incident, a trader, identified on-chain by the alias “sundayfunday.sol,” turned a $72,000 investment into a staggering $30 million within just three days trading a little-known cryptocurrency.
Various users on the microblogging platform X have suggested that the traders making such high-risk investments in these newly launched cryptocurrencies are the developers behind them or marketers helping pump the cryptocurrency’s price up so they could later sell the tokens at a higher value.
Featured image via Unsplash.
