Cryptocurrency Trader Turns $5,100 into $700,000 in Two Days with Little-Known Token

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As a seasoned crypto trader with over five years of experience under my belt, I must admit that seeing headlines like this one from Lookonchain makes my heart race. The story of frenulum.eth turning $5,100 into nearly $700,000 in just two days trading $VISTA is nothing short of jaw-dropping. It’s moments like these that keep me glued to my screen, scanning for the next big thing.

A shrewd crypto trader successfully transformed an initial investment of $5,100 into approximately $700,000 within merely two days, by dealing in a relatively obscure cryptocurrency linked to a platform for token launches, often compared to Ethereum‘s equivalent of Pump.fun.

Based on the analysis provided by Lookonchain, a trader identified as frenulum.eth achieved an impressive 134-fold return on the cryptocurrency, $VISTA. Initially investing approximately $5,000 (equivalent to 2.05 ETH), they purchased around 52,822 VISTA tokens.

Within merely two days, this trader witnessed a staggering increase in the worth of these tokens, which subsequently led to their sale at a whopping 276.5 Ether, roughly equivalent to around $700,000.

In a span of merely two days, frenulum.eth managed to make an impressive profit of 274 ETH ($696,700) from trading $VISTA, yielding a staggering 134x return!— Lookonchain (@lookonchain) September 3, 2024

Ethervista, a token launch platform, introduced the VISTA token. The intention behind this is to prevent rug pulls, which are deceitful practices where unscrupulous actors withdraw liquidity from decentralized finance platforms immediately after a new token is released, leaving other investors with tokens that have no market liquidity.

In many cases, this situation arises when individuals who are part of the project own a substantial portion of the overall supply – a tactic often employed by projects aiming to finance their operations during the launch phase – and subsequently sell off their tokens to investors quickly.

According to reports, a trader of cryptocurrencies was able to earn approximately $300,000 in one month by shorting MakerDAO’s MKR token. On July 19, this individual borrowed 500 MKR from the well-known decentralized finance (DeFi) platform Aave, and then sold these tokens for roughly $1.37 million.

Based on the analysis provided by the on-chain service Lookonchain, the trader is reported to have spent approximately $1.07 million worth of USDC (a widely used stablecoin) to purchase MKR tokens. This action was taken to repay their debt at a lower price, thereby closing their short position in the cryptocurrency market. In simpler terms, the trader used USDC to buy back MKR tokens they owed, effectively ending their bet against the increase of MKR’s value.

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2024-09-04 03:44