Savvy Trader made a 400% profit on this trending coin Meme – Details

TL;DR

A trader made a significant profit by buying and selling a new Telegram-related meme coin called DOGS. Earlier this month, however, another trader lost nearly $900,000 on a Trump-themed meme coin, highlighting the high-risk nature of the sector.

The substantial benefit

The ever-evolving meme coin sector has been one of the highlights of the crypto industry in recent months, releasing new tokens quite frequently.

One of the latest is Dogs (GOSS), an asset associated with the Telegram community, which saw the light of day about a week ago. Initially, the meme currency was available for trading on certain decentralized exchanges, while leading platforms such as Binance, ByBit and OKX added it soon after.

The increased volatility of meme coins (especially during their first trading days) sometimes results in significant profits for savvy traders who choose the right time to jump on the bandwagon. Crypto analytics platform Lookonchain revealed the case of an entity that made over 400% profit when dealing with DOGS.

The trader spent $18,400 in TON to buy 55.9 million DOGS tokens after numerous transactions on August 26. Shortly after, they sold 20 million coins for 6,140 TON (about $34,600) and deposited the remaining stash (equivalent to about $61,000 on a centralized exchange). If they sold all the DOGS tokens upon deposit, their total profit would be over $77,000.

Some X users who commented below the post noted that the purchase happened just hours before the post on Binance, wondering how the trader knew about this upcoming move.

Another industry participant was baffled by how the trader conducted transactions on the cross-chain DEX Ston.fi, claiming it was congested for four hours on August 26 and exchanges were unavailable.

When the Meme coin trading goes the other way

The volatile nature of the meme coin industry itself makes entry into the ecosystem quite dangerous and sometimes leads to devastating losses for traders.

Earlier this month, one investor spent over $900,000 to buy 7.2 million Restore the Republic (RTR) tokens. The trader jumped on the bandwagon when the valuation of the Trump-related meme coin exploded at launch. However, the price of the token crashed just as substantially shortly after. They then sold the deposit for just $18,000.

The unsuccessful trade should serve as a warning that individuals should do thorough research before dealing with meme coins and invest only as much as they are willing to lose. For additional helpful tips, you can watch our detailed video below:

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