summary
One trader made big profits buying and selling DOGS, a new Telegram-related meme coin, but earlier this month another trader lost roughly $900,000 on a Trump-themed meme coin, highlighting the riskiness of the sector.
Big Profits
The ever-evolving meme coins sector has been one of the highlights of the cryptocurrency industry over the past few months, with new tokens appearing frequently.
One of the latest is Dogs (DOGS), an asset associated with the Telegram community that appeared about a week ago. Initially, the meme coin was tradable on select decentralized exchanges, but was soon added to major platforms such as Binance, ByBit, and OKX.
Increased volatility in meme coins (especially in the first few days of trading) can bring huge benefits to savvy traders who time their buys to jump on the bandwagon. Crypto analytics platform Lookonchain uncovered the case of one company that made over 400% profits trading DOGS.
The trader purchased 55.9 million DOGS tokens using $18,400 worth of TON after numerous transactions on August 26. He then quickly sold 20 million coins for 6,140 TON (approximately $34,600) and deposited the remaining funds (approximately $61,000 worth) on a central exchange. If he had sold all DOGS tokens at the time of the deposit, his total profit would have been over $77,000.
Some X users commenting under the post noted that the buyout happened just hours before the cryptocurrency was set to be listed on Binance, leaving some wondering how traders knew about the move.
Another industry source was confused as to how traders were conducting transactions on the cross-chain DEX Ston.fi, claiming that it was jammed for four hours on Aug. 26, making swaps unavailable.
When meme coin trading went the other way
The volatile nature of the meme coin sector makes entering the ecosystem extremely risky and can result in devastating losses for traders.
Earlier this month, an investor spent more than $900,000 to buy 7.2 million Restore the Republic (RTR) tokens. The trader jumped on the bandwagon when the Trump-related meme coin's valuation soared upon launch. But the token's price crashed sharply soon after. They then sold their holdings for just $18,000.
This failed transaction should serve as a warning to individuals to do thorough research before dealing with meme coins and only invest what they can afford to lose. For more helpful advice, check out our in-depth video below:
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