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Cryptocurrency Trader Multiplies $12,300 to $1.72 Million in Just Four Days

Crypto Trader Turns $12,300 Into $1.72 Million In 4 Days

A recent cryptocurrency trader has generated buzz within the crypto markets, accumulating an astonishing $1.4 million in unrealized gains through astute DeFi trades involving the meme cryptocurrency PEW on the Ethereum network (ETH).

Analysis from ‘0x8EF73‘ shows a purchase of 27.05 billion PEW using 3.2 ETH, valued at $12,300. Lookonchain brought attention to these transactions on May 31 via a post on X.

Significantly, ‘0x8EF73’ parted with 8.05 billion PEW for 83.5 ETH or $315,000, translating to a substantial realized profit exceeding $300,000. Presently, the trader’s portfolio retains 1 billion PEW, assessed at $61,000.

Crypto Trader Pew Activity
Trade analytics for PEW/WETH on Uniswap. Credit: Lookonchain

Moreover, Lookonchain disclosed that this investor is overseeing an additional 18 billion PEW across 15 separate addresses, all traceable to the original purchase executed only minutes following the meme coin’s debut on Uniswap (UNI), a major Ethereum-based DEX.

The investor’s current holding in the said meme coin is valued at $1.42 million, merely four days subsequent to the initial transaction.

Possible Liquidity Complications in Cashing Out the $1.4 Million PEW Profit

Notably, the meme token dubbed “pepe in a memes world” (PEW) possesses a TVL of just $7.5 million on Uniswap, indicating limited liquidity for swapping PEW with other ERC-20 tokens on the platform.

Pew Tvl Uniswap
“pepe in a memes world” (PEW) liquidity data on Uniswap. Courtesy: Finbold

Attempts by the trader to liquidate substantial amounts of PEW could significantly affect the coin’s market value, thereby complicating profit liquidation.

Exploring the “Greater Fool Theory” in Relation to Meme Coins

The volatile and speculative nature of such cryptocurrencies carries significant risk considerations.

Meme coins like PEW often do not have intrinsic value, and their price is largely influenced by promotional tactics and viral sensations. The underlying premise for investors is speculation that they can sell the asset to another at a markup, known as the Greater Fool Theory.

This theory exemplifies the potential for making profit via the sale of overvalued assets to someone else at an escalated price, suggesting that there is always someone willing to pay more. However, it simultaneously warns of the peril in such strategies, as eventually, buyers may become scarce, leading to a financial freefall for late holders when the fervor recedes.

Disclaimer: The information provided here does not constitute investment advice. Investment decisions should be made with caution and understanding that risks are involved and investors may face loss of capital.

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