u.today
A Solana (SOL) trader has achieved what many in the digital currency world can only dream of in an astonishing display of cryptocurrency market acumen. Leveraging a mere 18 SOL (approximately $1,758), the trader managed to rake in a staggering 7,197 SOL, equating to around $703,000, in just five hours, marking a monumental 400 times gain on their initial investment.
This phenomenal feat was first brought to light by Lookonchain, a prominent blockchain analysis X (formerly Twitter) account, which detailed the transaction's specifics. According to the tweet, the trader's windfall came from an astute investment in FartCaster, a newly traded cryptocurrency.
In just 5 hours, this trader made 7,197 $SOL($703K) with only 18 $SOL($1,758), a gain of 400x!😱
— Lookonchain (@lookonchain) February 4, 2024
The trader spent 18 $SOL to buy 55.1B #FartCaster(55.1% of the total supply) in the same block where the deployer opened trading for #FartCaster.
He then sold 53.94B #FartCaster for… pic.twitter.com/BrVYltUYBh
With just 18 SOL, the trader acquired 55.1 billion FartCaster tokens, which astonishingly represented 55.1% of the token's total supply. This bold move was executed in the same block as the deployer opened trading for FartCaster, indicating a well-timed and strategic entry point for the investment.
Strategic moves
The bulk of the profit came when the trader sold 53.94 billion FartCaster tokens for 7,215 SOL, securing a massive return on their initial stake. Despite this large sale, the trader still holds 1.16 billion FartCaster tokens, valued at approximately $27,000, suggesting a belief in the token's potential future value or a strategic reserve for further price movements.
The strategy employed by the trader — purchasing a significant portion of a new token's supply upon trading launch and quickly selling for a profit — demonstrates an aggressive trading tactic that requires precise timing, thorough market analysis, and, not least, a considerable element of luck. It is a stark reminder of the "high risk, high reward" nature inherent to the cryptocurrency trading space.
The Solana blockchain, known for its high speed and low transaction costs, has become a favored platform for traders and developers alike, facilitating the kind of rapid and large-scale trades exemplified by this event. This trading success story may attract more attention to Solana's ecosystem, highlighting its potential for facilitating significant cryptocurrency transactions and investments.