Once a relatively obscure sphere of the market, cryptocurrencies have been propelled to mainstream appeal and accessibility by institutional support. While this has gone a long way in stabilizing prices, digital assets still see a huge degree of volatility when compared to their traditional counterparts.
While most investors might have switched to a long-term, buy-and-hodl approach, for those who aren’t risk averse, short-term trades have the potential to net immense profits — provided that they know what they are doing. This is particularly true in the case of meme coins.
However, it’s hard to overstate just how risky big, short-term bets can be — particularly in the era of automated trading systems, sniping, and rug pulls.
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In the early hours of January 3, one enterprising trader made a big, risky bet on a new, unproven asset — and luckily for them, it paid off in a big way just minutes later.
Bet on BUZZ secures big payday for trader
Roughly 8 hours before press time, a smart cryptocurrency trader spent a total of 82 Solana (SOL), worth roughly $17,000 at the time, in order to acquire 268.12 million Hive AI (BUZZ), per data retrieved by Finbold from Solscan on January 3.
This was quite the major stake — equal to 26.8% of the total supply. Of the 82 SOL, 49 were spent just on transaction fees — so that the trader’s transaction would be the first one to go through.
Just 8 minutes later, our trader liquidated their entire position — securing 6,090 SOL worth approximately $1.26 million at the time. Subtracting the initial 72 SOL investment, we’re left with a 6,008 SOL profit — amounting to $1.25 million.
Of course, the timing of the trade has made some suspicious. Investing $17,000 in an unproven crypto token is quite a risky play — that is, if you’re not an insider.
At present, BUZZ has a tiny market cap of just $33.91 million — and trading volume has seen a sharp drop since the beginning of the day.
Featured image via Shutterstock
