How One Trader Turned $895 Into $321,000 Overnight Using Meme Coins

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Joel Frank

Author

Joel Frank

About Author

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology…

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Last updated:

August 9, 2024 01:03 EDT

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A trader just turned an $895 investment into $321,000 overnight by investing in meme coins.

As per a tweet by on-chain sleuth Kakashi, the trader invested $895 into $BTW on pump.fun, a popular meme coin trading protocol on Solana.

They then proceeded to sell tokens worth $51,000, with over $265,000 left in their wallet.

That means they are sat on realized and unrealized combined gains of over $320,000.

Readers can check out the trader’s Solana wallet here: 4gVDRSy4UCvk85XsC2BMTbc66bM1BKeWPnMaK2scqDQ2.

The above trade is an example of how traders can turn a small initial investment into a fortune in meme coins.

In the above example, the trader bagged a 358x gain.

Risks of Investing in Meme Coins

The prospect of going from rags to riches in the meme coin markets is a major lure for traders.

But trading coins like $BTW is highly risky. Most newly launched cryptos are either scams or pump-and-dumps.

It’s far more common for an investor to lose their entire initial investment than to see big gains.

An investment strategy with a potentially better risk-reward is to invest in meme coin presales.

FOMO is a big risk that traders face when trading new coins on a DEX like Raydium.

When traders see the price shooting up, they often dive in and buy the peak without doing enough research.

By contrast, presales usually last a few weeks.

That means potential investors have plenty of time to research a project before they get involved, reducing the risk of making a FOMO-related mistake.

And avoiding FOMO isn’t the only benefit of presales.

Presales also serve to generate a lot of hype that can result in an explosive price move once the token launches.

Better Option – Pepe Unchained (PEPU)

Analysts at Cryptonews.com keep a close eye on the presale market.

One project they think has a lot of potential is a new crypto called Pepe Unchained (PEPU).

Pepe Unchained is a new Ethereum layer-2 protocol that aims to become the go-to blockchain for meme coin trading.

Pepe Unchained’s token presale launched a few weeks ago, raising close to $8 million so far.

See in the below video why popular presale analyst Jacob Crypto Bury thinks Pepe Unchained has 10x potential.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.