TL;DR
- A trader turned a $2,700 investment in Shiba Inu into $1.24 million after holding for over three years.
- Still, dealing with meme coins can be quite risky due to their extreme volatility, often leading to significant losses, so investors should be mindful.
Patience Is a Virtue
The cryptocurrency sector, particularly the meme coin realm, offers investors the chance to make substantial profits in case they enter at the right time and hold their ground through bear markets. According to Etherscan, one such savvy trader became a millionaire after entering Shiba Inu’s ecosystem over three years ago.
They purchased over 48 billion SHIB tokens in January 2021 for 2 ETH, an investment worth just $2,700 at the time. The “diamond hands” trader kept the stash untouched in the following years despite the devastating crypto winter in 2022-2023 and sold it earlier this week for approximately $1.24 million.
The impressive profit became possible thanks to SHIB’s exponential price increase in the past few years. Currently, the self-proclaimed Dogecoin killer is worth around $0.00002484 (per CoinGecko’s data), erasing multiple zeros from its valuation since the trader hopped on the bandwagon.
This is not the first such case where a Shiba Inu trader makes millions. As CryptoPotato reported in March, another one bought 50 billion SHIB assets in 2021 (equaling $2,500 at the time), and currently, they are sitting on a paper profit of more than $1.2 million.
The Solana-based meme coin – dogwifhat (WIF) – also witnessed a significant price rally in the past several months, benefiting traders who entered its ecosystem in its early days. One entity purchased over 2.5 million tokens at the end of 2023, spending just $310. The trader will make a whopping profit of more than $8 million should they decide to cash out.
The Potential Risks
Despite sounding like a great investment option, delving into the meme coin realm can also be quite dangerous due to the cohort’s infamous volatility. Double-digit price crashes are quite frequent and can lead to crucial losses for investors.
Traders should carefully observe the market beforehand as many enter the ecosystem during a FOMO (Fear of Missing Out) phase. The period is associated with rallying prices, increased interest, and endorsements on social media platforms like X.
As such, some people hop on the bandwagon not because they see intrinsic value in a particular token but out of fear that, otherwise, they will miss the green wave and the potential profits. In many cases, though, prices head south after the FOMO period, leaving investors empty-handed.
If you are about to enter the ecosystem, please check our dedicated video below to protect yourself from mistakes of that type:
The post Here’s How This Shiba Inu (SHIB) Trader Turned $2.7K Into $1.24 Million appeared first on CryptoPotato.
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