A trader just turned an $895 investment into $321,000 overnight by investing in meme coins.
As per a tweet by on-chain sleuth Kakashi, the trader invested $895 into $BTW on pump.fun, a popular meme coin trading protocol on Solana.
This guy bought bout $895 $BTW at pumpfun, sold over $51,000 and has over $265,000 left in token.
https://t.co/RIViuiFH8D pic.twitter.com/26nkowq3Uz
— Kakashi (@kkashi_yt) August 8, 2024
They then proceeded to sell tokens worth $51,000, with over $265,000 left in their wallet.
That means they are sat on realized and unrealized combined gains of over $320,000.
Readers can check out the trader’s Solana wallet here: 4gVDRSy4UCvk85XsC2BMTbc66bM1BKeWPnMaK2scqDQ2.
The above trade is an example of how traders can turn a small initial investment into a fortune in meme coins.
In the above example, the trader bagged a 358x gain.
Risks of Investing in Meme Coins
The prospect of going from rags to riches in the meme coin markets is a major lure for traders.
But trading coins like $BTW is highly risky. Most newly launched cryptos are either scams or pump-and-dumps.
It’s far more common for an investor to lose their entire initial investment than to see big gains.
An investment strategy with a potentially better risk-reward is to invest in meme coin presales.
FOMO is a big risk that traders face when trading new coins on a DEX like Raydium.
When traders see the price shooting up, they often dive in and buy the peak without doing enough research.
By contrast, presales usually last a few weeks.
That means potential investors have plenty of time to research a project before they get involved, reducing the risk of making a FOMO-related mistake.
And avoiding FOMO isn’t the only benefit of presales.
Presales also serve to generate a lot of hype that can result in an explosive price move once the token launches.
Better Option – Pepe Unchained (PEPU)
Analysts at Cryptonews.com keep a close eye on the presale market.
One project they think has a lot of potential is a new crypto called Pepe Unchained (PEPU).
Pepe Unchained is a new Ethereum layer-2 protocol that aims to become the go-to blockchain for meme coin trading.
Pepe is gearing up to surf his own Layer 2 blockchain – the first of its kind!
pic.twitter.com/T41V8wNDBh
— Pepe Unchained (@pepe_unchained) August 8, 2024
Pepe Unchained’s token presale launched a few weeks ago, raising close to $8 million so far.
See in the below video why popular presale analyst Jacob Crypto Bury thinks Pepe Unchained has 10x potential.
The post How One Trader Turned $895 Into $321,000 Overnight Using Meme Coins appeared first on Cryptonews.
