TL;DR
The second-largest meme coin – Shiba Inu (SHIB) – has witnessed a whopping 300% price increase in the past month, thus placing itself among the most trending cryptocurrencies (once again). Its impressive rebound has also benefited some investors who had entered its ecosystem during its early days.
Lookonchain revealed the case of one particular trader who spent approximately $2,500 to purchase almost 50 billion SHIB tokens in 2021. After 30 months of staking, the individual withdrew 40.5 billion assets and deposited them into Coinbase.
The trader will make a profit of approximately $1.58 million should they decide to sell the stash, representing a gain of 628x.
Shiba Inu is not the only meme coin to have exploded by triple digits in several weeks, thus positioning the investments of savvy traders well in the green.
As CryptoPotato reported last month, an individual bought over 2.5 million dogwifhat (WIF) tokens at the end of last year, spending just $310. Due to the coin’s rapid price appreciation, the trader currently sits on a paper profit of more than $5.3 million.
Recall that WIF has been one of crypto’s rock stars in the past several days, with its valuation skyrocketing by 500% on a 14-day scale and surpassing the $2 mark. Its market capitalization exceeded $2 billion, making it the 54th biggest digital asset (per CoinGecko’s data).
Trading meme coins during the ongoing bull run indeed seems like an attractive investment opportunity, but it could also cause crucial losses due to the cohort’s infamous volatility. Please take a look at our latest video to check the most common mistakes that successful traders need to avoid when dealing with assets of that type:
