The ongoing meme coin frenzy continues to create opportunities for savvy traders, with a recent example emerging on the Solana blockchain.
According to crypto analytics firm Lookonchain, a trader identified by his wallet address (5aLaR…GJXA) turned a small investment into a significant profit by trading the newly launched meme coin SHAD.
Read Also: Solana Trader Turns 3 SOL Into $170,000 With A Single Trade. Here’s how
Mirroring a recent event reported by Times Tabloid, the trader took a bold gamble by allocating just 2 SOL tokens, worth roughly $368 at the time, to purchase 90 million SHAD tokens. This high-risk strategy paid off handsomely, as SHAD experienced a meteoric rise within 24 hours, reaching its all-time high of $0.088.
With only 2 $SOL, this trader made 1,408 $SOL ($260K), a gain of 704x!
He spent 2 $SOL to buy #memecoin 90M $SHAD and sold 85.3M $SHAD for 1,410 $SOL.
He still has 4.7M $SHAD left, worth $12K.https://t.co/xuJXjcFqRE pic.twitter.com/euinontP4K
— Lookonchain (@lookonchain) March 19, 2024
Profit Taking and Remaining Holdings
The trader capitalized on the surge, and strategically sold 85.3 million SHAD tokens, generating a return of 1,410 SOL, equivalent to approximately $260,000 at the time. This represents a staggering 704x increase in the initial investment.
While a significant portion of their holdings were sold, the trader remained invested in SHAD, retaining approximately 4.7 million tokens with a current market value of $5,212 (based on SHAD’s price of $0.001109 as of this writing).
Solana: A Fertile Ground for Meme coins
This event highlights Solana’s emergence as a breeding ground for meme coin activity. Another recent example involved a trader who successfully turned $1,749 into $10.9 million by trading Dogwifhat (WIF), another popular meme coin within the Solana ecosystem. WIF currently boasts a market capitalization of over $2 billion.
It is important to remember that the meme coin market is volatile. While some meme coins, like Shiba Inu (SHIB), PEPE, and BONK, have achieved some level of long-term sustainability, countless others experience a rapid rise followed by a steep decline.
Dogwifhat’s ability to maintain value during a broader market downturn in January 2024 suggests it may have some staying power, but this is not guaranteed.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Another Solana Trader Turns 12 SOL into $3.5 Million in Five Days. Here’s how
The story of the SHAD trader serves as a cautionary tale alongside a potential windfall. While the high returns are undeniable, such success hinges on an element of luck and perfect timing.
Investors entering the meme coin market should not rely on luck. They should with a risk tolerance that acknowledges the potential for losses alongside the possibility of extraordinary gains. It is vital to conduct thorough research and invest only what you can afford to lose.
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