A crypto trader made 2100 Xs on a fraudulent meme token in just three hours. How did he do it?
Success stories are what motivates participants in the crypto industry. This time, one trader was lucky enough to get more than 2100 Xs on his initial investment, which means he increased the amount invested beyond recognition. It is especially funny that he invested in a meme-token, which turned out to be a fraudulent project. However, even this fact did not prevent the market participant from making a great fortune in just a few hours. We tell you how exactly he did it.
How to make money on meme-tokens
A profitable deal got on the radar of Lookonchain service, whose representatives shared the details of the scheme on their Twitter page. As it turns out, an anonymous person initially invested 2 SOL or approximately $460 at the exchange rate at the time of the transaction in a token with the ticker QUANT.
Here’s a rejoinder on the matter, as quoted by Cointelegraph.
2 SOL and a dream! This guy made $988,000 with just 2 SOL or $462 in just three hours – that’s a 2141 X return! He spent the money to buy 18.89 million QUANT. He then sold 3.71 million QUANT for 116 SOL or $27 thousand dollars, leaving another 15.18 million QUANT equivalent to $962 thousand dollars in his wallet.
It's important to realise that stories like this are the exception to the rule, so repeating them will most likely not happen. In most cases, investors lose money invested in new meme tokens, as the latter can lose the interest of investors in a matter of days. Accordingly, it is not worth investing all funds in such projects in an attempt to become a millionaire - most likely it will end in failure.
Transactions of a cryptocurrency trader who made money on QUANT
The Gen Z meme token Quant (QUANT) was launched using the pump.fun platform – the most popular Solana-based longchip in the meme sphere. The project ended up being a scam, although that didn’t stop the aforementioned trader from making money.
Other transactions of the cryptocurrency trader who made money on QUANT
The token was created on 20 November by a wallet signed “Fi2h”. The project was launched by a teenager live on air – he also showed how he sells all his accumulated tokens on the stream, collapsing their value.
This type of scam in crypto is called a ragpool. This is a scheme where the creators of the project sell coins and hide with the money, which in turn turns into losses for other investors.
You can do this not only by directly selling coins at your disposal, but also by more devious ways. For example, developers can withdraw liquidity from the relevant pools on decentralised exchanges, which is necessary for transactions. In such a case, the team token would collapse to zero, as the balance in the liquidity pool would be disrupted.
However, the developers will be able to pick up the popular coin paired with which the asset was traded. For example, this could be ETH for platforms based on the Efirium network and SOL for exchanges on Solan.
QUANT coin creator’s stream
The actions of the juvenile scammer were commented on by Lookonchain. Here is their rejoinder.
The kid created QUANT during the live stream and sold the tokens for 128 SOL or $30,000, making a profit of $29,600! The 51 million QUANT he sold are now worth at least $4 million. He then created the LUCY and SORRY tokens, making another 103 SOL or 24 thousand dollars!
The rise of the QUANT meme token
The scammer’s stream created the opposite effect – the cryptocurrency community liked the idea of pamping the project. QUANT started actively buying, after which the token’s capitalisation passed the $1 million mark.
This is quite a high bar for “disposable” memes in crypto, as only a few coins launched on the mentioned pump.fun platform reach it.
In any case, the information about the event show how much the market is “heated” right now, and how luck combined with recklessness allows you to make money – and even for minor blockchain users.
😈 MORE INTERESTING STUFF CAN BE FOUND IN OUR YANDEX.ZEN!
Another scammer in the spotlight is popular blogger Logan Paul. He is accused of promoting high-risk projects that caused many investors to lose their money. In particular, we are talking about the projects Elongate, Ink Doink and CryptoZoo. During the investigation, BBC journalists found evidence linking Paul to an anonymous cryptocurrency wallet that interacted with the listed tokens.
The anonymous wallet allegedly purchased the tokens before Paul promoted them to his 23 million YouTube subscribers and then sold them at a profit after the price spiked. Journalists cited an example where Paul backed the launch of the Elongate meme token in 2021, after which an anonymous wallet purchased the asset for $160,000, making a profit of $120,000 after the sale.
Such actions are illegal because the blogger did not mention his own financial interest, i.e. the presence of tokens, when advertising such crypto projects. And this is another reminder that no one can be trusted in the cryptocommunity - and this applies to celebrities in the first place.
Blogger Logan Paul
Paul was also previously sued over the NFT game CryptoZoo. According to the investors, it simply did not have the promised set of features. At least 130 investors have come out on the side of the plaintiffs, claiming financial losses totalling more than $4 million.
Paul announced his token “buyback” programme, promising to buy back NFT at the original price. However, with the caveat that this would mean giving up the right to sue Influencer or CryptoZoo for additional damages. Apparently, such a promise has come to nothing.
Memes continue to be the hit of the current bullrun in the crypto industry. Their advantage is the fun component, which attracts new investors and thus ensures high trading volumes along with a strong community. However, in the long run, many such projects die, so you should be as careful as possible with them.
For even more interesting stuff, check out our crypto chat. We are definitely waiting for you there to properly understand the current bullrun in crypto and make money from it.
SUBSCRIBE TO OUR CHANNEL IN TELEGRAM TO KEEP UP TO DATE.
Related posts
