A cryptocurrency trader on Coinbase's Layer-2 network Base has successfully converted about $13,000 worth of Ethereum ($ETH), the second-largest cryptocurrency by market capitalization, into over $2 million by trading a little-known cryptocurrency inspired by memes.
The trader saw Donotfomoew ($MEOW) on the network about ten minutes after it started trading, and within an hour he managed to turn the $13,000 into almost $2 million, according to on-chain analysis service. He then paid 4 ETH to purchase nearly 500 million tokens of the cryptocurrency.
The trader sold 111.65 million tokens for 99 ETH, or roughly $328,000, once the price of $MEOW began to rise. The trader still has over 388 million meme-inspired coins, valued at over $1.75 million.
Particularly, the trader appears soon after another cryptocurrency trader who, by trading obscure cryptocurrencies with market capitalizations below $5,000, was able to turn just 0.1 ETH into over $8.3 million on Base in less than a week.
Lookonchain claims the trader hasn't experienced the same level of success on Ethereum as other meme-inspired cryptocurrency traders. The latest memecoin craze has seen traders make — and lose — millions in comparatively short lengths of time, as CryptoGlobe has been reporting.
A trader, for instance, lost $46,000 in just three minutes when the Milady Wif Hat ($LADYF) token's price crashed. The incident brings to light a number of important characteristics that are unique to the cryptocurrency market, such as its inherent volatility, which is particularly noticeable in less well-known and meme-inspired cryptocurrencies, and the potential liquidity problems that these recently released tokens may have, which could result in traders suffering sizable losses due to slippage.
In a another instance, a memecoin experienced a sharp increase in value of almost 3000% in a single day. A trader of cryptocurrencies was able to profit from this by placing a wager of 50 $SOL, or over $9,000, in the cryptocurrency. They've made over $123,000 in profit since it started to grow.
April 2024, Cryptoniteuae