On-chain data shows how a trader turned $1 million into several millions after being the first to buy into a newly launched token.
The cryptocurrency industry is rife with money-making opportunities. However, having the right amount of capital and tools, as well as being right on time, can make the difference between making and losing money.
In a recent development, it all came together for a trader who bought into the newly launched crypto token SatoshiVM (SAVM). SatoshiVM brands itself as a Bitcoin-based ZK-rollup and layer-2 solution that uses native BTC as gas.
While the platform only recently launched on testnet, it released its native SAVM token on Uniswap on Friday. The hyped launch event attracted many investors, including a trader who out-paid others to get in the front row.
According to LookonChain, the trader paid a bribe of 141.66 ETH (approximately $343,000) to be the first to buy SAVM. Using a popular trading bot, Banana Gun, the trader acquired 2.61 million SAVM tokens for approximately 277 ETH (approximately $681,000).
Within a few hours after its launch, the token had increased by more than 500% on their initial investment. The trader initially liquidated 2.16 million SAVM for $4.38 million and has since gone ahead to sell the rest of their holdings.
The address holds a balance of just 0.07 SVM at the time of writing. The total profit realized from the SAVM trade had exceeded $6.77 million.
In just 3 hours, this trader made ~$6.77M on $SAVM!?
He used #BananaGun and a bribe fee of 141.66 $ETH to be the first one to buy $SAVM at the opening, buying 2.61M $SAVM with a total cost of 277.66 $ETH($681K).
Now he is selling $SAVM and has sold a total of 2.16M $SAVM for… pic.twitter.com/F21Te2NTRH
— Lookonchain (@lookonchain) January 19, 2024
Bold Move or Insider Trading?
Speculation abounds on crypto X regarding the entity behind the largely profitable SAVM trade. While some argue that the transaction was merely done by a trader who had a large capital at their disposal, others point to the rapid timing as evidence that an insider may have capitalized on the opportunity.
In either case, the latest development also highlights the transparency of blockchain systems. While everyday users may not be aware of such high-profile wins in the traditional investment world, blockchain enhances transparency and allows anyone with the right resources to profit.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
