Amid the ongoing trend of investors profiting massively from meme coins, an unknown trader has capitalized on this momentum to register a 490-fold return on their investment in the Comedian (BAN) token.
Specifically, the trader turned an initial investment of $1,795 into $873,000 in just two days in a transaction involving the BAN/SOL pair on the Raydium automated market maker (AMM) platform, according to data shared by the on-chain analysis platform Lookonchain on October 27.
In this case, the returns were not just due to mere luck, as the trader employed a strategic approach. The investor began with 10.2 Solana (SOL), securing 36.27 million BAN tokens.
As BAN surged, the investor seized the opportunity to cash in on his gains incrementally, avoiding the temptation to sell everything at once.
Notably, the traders sold portions of their holdings after each price peak, which allowed them to record profits while maintaining exposure to the meme coin’s rally.
In the first rally, the investor offloaded 12 million BAN for $56,900. Shortly after, BAN’s value dropped sharply, plummeting nearly 90%. Their patience paid off when BAN surged again, leading to an additional sale of 6.13 million tokens for $80,700, bringing cumulative earnings to over $137,000.
At the end of this run, they still held 18.13 million BAN, valued at $734,000, bringing the total balance to $873,000.
Why BAN price rallied
The BAN meme coin was inspired by Maurizio Cattelan’s “Comedian,” a banana duct-taped to a wall in 2019, which went viral due to the debates it sparked about consumerism and the art market.
The artwork has regained attention after Sotheby’s announced that one of the three “editions” of Comedian is going back on sale, potentially fetching at least $1 million.
This staggering valuation has generated massive social media chatter, increasing BAN’s price. At the same time, BAN’s momentum was also boosted by listings on exchanges like Poloniex, where full trading was set to begin on October 27.
As of press time, BAN was trading at $0.05026, with a market capitalization of $50.25 million and slightly over 8,000 holders.
Risks of more BAN tokens popping up
However, it’s worth noting that several meme coins named Comedian have recently popped up on other networks, such as Ethereum (ETH).
The emergence of similarly named coins has increased the risk that bad actors might attempt to exploit unsuspecting investors through rug pulls. To avoid falling victim, Finbold highlighted ways investors can identify potential rug pulls.
RugCheck’s analysis of Comedian indicated that the token’s risk rating is “Good.”
Overall, meme coins seem to be making a comeback. While some smart investors have profited through strategic timing, others have faced losses or missed out on windfalls due to poor timing. Ultimately, meme coins carry an inherent volatility risk due to a lack of substantial fundamentals.
Source: https://finbold.com/crypto-trader-turns-1700-into-873000-in-2-days/