TL;DR
- A trader turned $1,900 into $3.67 million in just two hours thanks to the rise of $ELIZA.
- Bought 89.19 million $ELIZA tokens and sold 49.49 million for 7,091 SOL ($1.72M).
- Still holds 39.7 million tokens, valued at approximately $1.95 million.
Recently, a crypto trader managed to turn an initial investment of $1,900 into an astounding $3.67 million in less than two hours.
This remarkable return was fueled by the meteoric rise of $ELIZA, a meme token on the Solana (SOL) blockchain.
According to data gathered by LookOnChain from sources like Solscan and Lookonchain, the trader spent 7.84 SOL to acquire 89.19 million $ELIZA tokens via the decentralized exchange Raydium.
As the value of ELIZA skyrocketed, the trader sold 49.49 million tokens for 7,091 SOL (approximately $1.72 million).
However, the story doesn’t end there. The trader still holds 39.7 million $ELIZA tokens, now valued at around $1.95 million.
This brings the total profit to more than $3.67 million, marking a nearly 1,925x return on the original investment.
This type of performance is almost unimaginable in traditional investment markets, but it serves as a reminder of the extremely volatile and speculative nature of crypto, especially meme coins.
The rise of $ELIZA was nothing short of spectacular.
Within hours, the token’s market capitalization soared to $48.5 million, while its trading volume reached $273 million in the past 24 hours, indicating a frenzy among investors seeking to cash in on the surge.
However, some signs of consolidation began to appear, with the trader still actively selling, suggesting that the rally may not be over yet but also flagging potential risks for those joining the trend too late.
The risks of crypto meme coin trading
While the trader’s success is undoubtedly impressive, it highlights the high-risk, high-reward nature of meme coin trading.
These tokens often see rapid price increases driven by speculation, but their volatility makes them susceptible to equally sharp declines when traders start cashing out.
Many of these projects also face criticism for lacking transparency, raising concerns about the fairness of their initial distribution and trading activity.
This has sparked a wave of negative comments, especially on platforms like X (formerly Twitter), where some users suspect insider trading or tax avoidance due to the token’s initial behavior, which saw it drop two zeros within minutes of minting, making it difficult for regular investors to join in the early gains.
In fact, some critics pointed out that the price of $ELIZA plummeted within minutes after its launch, making it almost impossible for average investors to get in on the initial profits.
This situation fuels speculation about potential manipulation or strategies that favor certain market participants. Meanwhile, regulatory authorities continue to closely monitor these types of tokens due to the lack of clarity and inherent risks involved.
Despite all of this, the $ELIZA story remains a lesson in the extreme volatility that defines the world of crypto.
While investors may reap huge rewards in short periods, they are also at risk of significant losses if the market turns against them.
Therefore, it’s crucial for anyone venturing into these high-risk assets to be prepared for the uncertainty and instability they entail.
