In the fast-paced world of cryptocurrency, traders are increasingly turning to memecoins for quick profits, and sometimes, massive losses. A recent example reported by Lookonchain reveals just how quickly fortunes can change in the memecoin space.
Smart Trader Bags $3.9M Profit on Base
One trader, who began with $115,000, turned that sum into an astonishing $3.9 million in less than 20 days by trading memecoins on the Base blockchain. But as is often the case in this high-risk market, these gains are as volatile as the coins themselves.
The trader’s journey began on November 10, when they started bridging funds to the Base network to engage in memecoin trading. The strategy paid off almost immediately, with profits accumulated from a handful of high-flying memecoins.
These included $AIXBT, $SAINT, $VADER, and $ECHO. Each coin contributed to the trader’s overall success, but the most significant gains came from $AIXBT, which alone generated approximately $3 million in profit.
How was the Trading Done?
The trader initially spent 30,000 $VIRTUAL (worth around $10.6K) to purchase 9.17 million $SAINT tokens. As of the latest report, the unrealized profit on this investment was approximately $360K, a gain of 3386%.
Similarly, with $VADER, the trader spent 24,000 $VIRTUAL (about $13.7K) to acquire 6.45 million tokens, realizing an unrealized profit of $333K (+2428%). The $ECHO tokens, while still profitable, generated a more modest return of $26K (+92%) on an investment of $28.5K.
The main coin for this trader’s success was $AIXBT. The trader spent 235,141 $VIRTUAL (roughly $88.5K) to buy 14.93 million $AIXBT tokens, later selling 1.95 million of them for $400K while holding on to the remaining 12.97 million tokens valued at around $2.7 million.
This investment alone accounted for the bulk of the $3 million profit. The rapid increases in token prices showed how memecoins, driven by hype and momentum, can lead to astronomical returns in a short period.
The Risks That Come With Memecoins
However, this kind of trading is not without risks. While the trader is currently in the green, the memecoin market is notoriously unpredictable. The value of these tokens can fluctuate wildly, often driven by social media trends, influencer promotions, or simply market speculation. A single tweet or a viral meme can send the price soaring, but equally, a sharp downturn can wipe out profits just as quickly.
To underscore the speculative nature of this market, the trader’s most recent transaction was a $150K purchase of $SPEC, showing their willingness to continue riding the memecoin wave. The sheer unpredictability of these investments means that one wrong move could quickly turn a $3.9M fortune into a loss.