In the last two years, the crypto market has experienced high levels of volatility, which has led to significant fluctuations in the prices of cryptocurrencies. Amidst this volatile environment, a 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 past two years. The profits realized by this trader are highly unusual considering the current volatile environment in 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 the realized value and 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. The Bitcoin SOPR is currently just under 1, above which the total BTC investors are effectively in profits. Thanks to the crypto bull run since the beginning of 2023, the SOPR went up high enough to pull the overall market investors into profits after a prolonged bear run in 2022. The trader has gained a SOPR of 285 times and 117 times in his top two trades, which is highly 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 profits by trading shitcoins. While most traders struggle to make 10 times returns on cryptocurrency, this shitcoin trader made over 10 times gains on 15 tokens, with 10 times being 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 $PEPE meme coin, which rose significantly in value after 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 32,000X profit. Memecoins have gained popularity in recent years, with Dogecoin being one of the most well-known. However, interest in meme coins slowed down after Dogecoin’s logo was removed after briefly replacing the Twitter bird logo.
The shitcoin trader’s profit has not had a significant impact on the overall crypto market. The 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. Additionally, regulatory uncertainty surrounding cryptocurrencies in several countries could also be contributing to the decline in prices.
Conclusion
In conclusion, the trader’s profit from trading shitcoins is highly unusual considering the current volatile environment in 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 coin. However, the impact of the trader’s profit on the overall crypto market has been minimal. As the crypto market continues to experience volatility, it is essential for traders to have a deep understanding of the market and to identify undervalued tokens.
