A trader’s profit of $2 million from Shitcoins during volatile crypto market – Cryptopolitan
Over the past two years, the crypto market has experienced high levels of volatility, leading to significant fluctuations in the prices of cryptocurrencies. Amidst this volatile environment, one trader is said to have made huge fortunes trading shitcoins, lesser-known crypto-tokens. The trader has realized a net profit of around $2 million from trading over 3,000 shitcoins in the last two years. The profit realized by this trader is very unusual considering the current volatile environment of the crypto market.
Factors that contributed to the trader’s profit
One of the factors that contributed to the trader’s profit is the Spent Output Profit Ratio (SOPR). SOPR is the ratio of realized value to the value at creation for cryptocurrencies. This essentially indicates whether the market is in profit or not at a given time by calculating the price sold versus the price paid. Bitcoin SOPR is currently just under 1, above which the total BTC investors are actually in profit. Thanks to the crypto bull run since the beginning of 2023, the SOPR went high enough to pull the overall market investors into profit after a longer bear run in 2022. The trader has achieved a SOPR of 285 times and 117 times in his top two trades, which is very unusual and indicates the trader’s exceptional trading skills.
Another factor that contributed to the trader’s profit is their trading strategy. The trader has been able to make significant profit by trading shitcoins. While most traders struggle to earn 10x returns on cryptocurrency, this shitcoin trader made over 10x gains on 15 tokens, with 10x the lowest profit ratio. The Shitcoin trader’s trading strategy is not known, but it is clear that they have a deep understanding of the market and are able to identify undervalued tokens that have the potential for significant growth.
Accumulation of $PEPE Memecoin
The trader has also accumulated the $PEPE meme coin, which rose significantly in value after its creation this week. The trader bought 2.52 trillion $PEPE worth $816,000 currently with $0.013 ETH worth as little as ($25), realizing a profit of 32,000X. Memecoins have gained popularity in recent years, with Dogecoin being one of the most famous. However, interest in meme coins waned after Dogecoin’s logo was removed after briefly replacing the Twitter bird logo.
Shitcoin trader profits have not had a significant impact on the overall crypto market. Bitcoin price saw a 3% decline in the last 24 hours, down from the $29,300 range. This decline is likely due to various factors such as the recent ban on cryptocurrency mining in China, which has led to a decrease in mining difficulty and an increase in mining rewards for miners outside of China. In addition, regulatory uncertainty surrounding cryptocurrencies in several countries may also contribute to the price decline.
Conclusion
In conclusion, the trader’s profit from trading shitcoins is very unusual considering the current volatile environment of the crypto market. The factors that contributed to the trader’s profit include the Spent Output Profit Ratio (SOPR), their trading strategy and the accumulation of $PEPE meme coins. However, the impact of the trader’s profits on the overall crypto market has been minimal. As the crypto market continues to experience volatility, it is important for traders to have a deep understanding of the market and identify undervalued tokens.
