As a seasoned analyst with years of experience navigating the tumultuous seas of the cryptocurrency market, I have seen it all – the dizzying highs and the crushing lows that define this wild frontier. The recent developments surrounding meme coins like DOGS and RTR are no exception.
TL;DR
- A trader made a significant profit by buying and selling a new Telegram-related meme coin called DOGS.
- Earlier this month, though, another trader lost nearly $900,000 on a Trump-themed meme coin, highlighting the high-risk nature of the sector.
The Substantial Profit
Over the past few months, the rapidly changing world of meme-based cryptocurrencies has been a standout feature within the broader crypto market, consistently introducing fresh coins to the scene.
One of the more recent additions is the cryptocurrency called DOGS, tied to the Telegram community, that made its debut around a week ago. At first, this meme coin could be traded on specific decentralized exchanges, with major platforms like Binance, ByBit, and OKX adding it shortly thereafter.
The increased volatility in meme coins, particularly during their initial trading periods, can sometimes lead to substantial gains for astute traders who time their entry well. For instance, an entity was able to secure a profit exceeding 400% by trading DOGS, as uncovered by the crypto analytics platform Lookonchain.
On August 26th, a trader invested 18,400 TON, which is equivalent to 55.9 million DOGS tokens. After numerous transactions, they swiftly sold 20 million DOGS coins for approximately 6,140 TON (around $34,600). The rest of the holdings, amounting to roughly $61,000, were transferred to a centralized exchange. If the trader had sold all their DOGS tokens upon deposit, their total profit would have exceeded $77,000.
Some X users below the post are questioning if the trader got wind of the sudden buying spree on Binance only a few hours after it was listed, as they’re curious about the source of his knowledge regarding this unexpected action.
As a researcher, I found myself perplexed while observing how a trader executed trades on the cross-chain DEX Ston.fi on August 26. The platform seemed to be congested for a staggering four hours, and during this period, swap functionalities were reportedly unavailable.
When Meme Coin Trading Goes the Other Way
Entering the unpredictable world of meme coins comes with a certain level of risk, as sudden fluctuations can result in substantial losses for traders.
At the beginning of this month, a single investor splurged over $900,000 to acquire 7.2 million Restore the Republic (RTR) tokens. This investor hopped on board when the value of the coin linked to Trump skyrocketed during its debut. Unfortunately, the token’s price plummeted nearly as dramatically in the immediate aftermath. Consequently, they disposed of their holdings for a mere $18,000.
A failed trade experience is a reminder to thoroughly research meme coins prior to investment, limiting the amount invested to what one can afford to potentially lose. For further guidance, feel free to watch our informative video below:
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2024-08-27 19:20