A cryptocurrency trader turned $50.98 into approximately $10,900 in two hours, speculating in a recently created token. The trading occurred on February 21 against Solana (SOL) using its DeFi ecosystem.
Lookonchain spotted what it deemed to be “unbelievable” results, posting the accomplishment on X (formerly Twitter). Notably, this anonymous crypto trader realized over 21,000% gains with one purchase and six sellings of a token called NVDA.
In this context, Finbold gathered data from DexScreener showing the trader’s ‘Buy’ and ‘Sell’ operations for NVDA/SOL on Raydium.
First, a purchase worth $50.98 with 0.5 SOL at 0.00002816 SOL per NVDA. Followed by sell-offs worth $931, $1,633, $2,143, $1,734, $2,291, and $2,210.
NVDA token and Raydium analysis
Raydium (RAY) is Solana’s second-largest decentralized exchange by total value locked (TVL), with nearly $150 million locked by liquidity providers. Interestingly, this exchange moved $160.92 million in its 24-hour volume – surpassing the TVL, according to data from DefiLlama.
In particular, NVDA is just one low-liquidity token that exists on this platform. Moreover, it was issued on the same day of the trade and has no special fundamentals to back further increases.
Curiously, its name resembles NVIDIA Corp (NASDAQ: NVDA) stock, which has achieved large successes in the stock market. Therefore, it is possible that the token’s issuer could have benefited from investors’ confusion of its legitimacy.
It is worth noting that anyone can issue a token with any ticker in these decentralized exchanges. Thus, investors must always cautiously research the asset’s origin before deploying meaningful capital.
Additionally, recently issued tokens usually have low liquidity available. This makes it difficult for traders to realize meaningful gains when these gains rarely occur. Speculating on the cryptocurrency market, specifically on DeFi, is risky, uncertain, and not recommended for beginners.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
