finbold.com
An anonymous cryptocurrency trader increased their holdings by approximately 10 times in one month, to $3.23 million. This facet was achieved by trading low-cap tokens, following a high-risk strategy that, this time, resulted in a favorable outcome.
The achievement was first noticed by Lookonchain, who reported about it on X (formerly Twitter) on December 15. Notably, the anonymous trader started with $315,000 and achieved $2.98 million in digital assets when Lookonchain posted the story.
$2 million of unrealized profit with a single token
Interestingly, Lookonchain reported that MultiBit (MUBI) was responsible for around two-thirds of this trader’s current balance. The token surged by 4,729% since launch, trading at $0.2551 by press time.
“MultiBit is the first-ever dual-sided bridge designed for easy cross-network transfers between BRC20 and ERC20 tokens.”
— Lookonchain
In particular, the trader spent 38.33 WETH ($75,500) to buy 10.27 million MUBI within three days after the token went online. The 10.27 million acquired MUBI is now worth $2.61 million, for an unrealized profit of $2.53 million from MUBI alone.
Nevertheless, it is important to understand the trader would face challenges to liquidate this position and realize the profit. Essentially, it accrues for more than 10% of the token’s market capitalization — any meaningful sell-off would directly impact MultiBit’s price.
Besides MUBI, the anonymous trader made several other trading operations with multiple tokens. Among these trades, this address also accumulates losses, which were compensated by the wins.
All things considered, trading cryptocurrencies is risky, volatile, and unpredictable. Statistically, most traders will lose money in the long term for short-term, high-risk operations. Investors and traders should not blindly follow third-party strategies like the one reported here.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.