A trader has recently managed to make a substantial profit of $59,000 in just 11 hours from an initial investment of 1 Ethereum (ETH), valued at $2,500.
The trader managed to do this by leveraging the MINER token based on the ERC-404 token standard and using strategic high-gas transactions.
The Trader’s Strategy
Lookonchain Analytics shared insights into their strategy through a post on X. The trader began by withdrawing 1 ETH from the popular cryptocurrency exchange Binance and invested a mere 0.065 ETH ($163) to purchase 1073 units of the ERC-404 token known as MINER.
Despite the low initial investment, the trader strategically used 0.802 ETH ($2,010) in gas fees to facilitate the transaction.
Starting with only 1 $ETH($2,507), this smart trader made $59K in 11 hours!
His secret to making money is buying and selling the #ERC404 token $MINER using high gas!
He withdrew 1 $ETH ($2,507) from #Binance and successfully spent 0.065 $ETH($163) to buy 1073 $MINER at a very… pic.twitter.com/GQDiKupFee
— Lookonchain (@lookonchain) February 12, 2024
The trader then promptly sold 722 MINER tokens for a return of 19.11 ETH, using an additional 0.5 ETH ($1,244) in gas fees to facilitate the transaction.
At present, the trader still retains 350 units of MINER tokens, valued at approximately $15,000. When combined with the profits from previous transactions, the total earnings amount to a total of $59,000.
Trader Nets $166K in 2 Days with DeFrogs
Meanwhile, this isn’t the first time a trader has profited from leveraging a token based on the new ERC-404 token standard. Just last week, an unidentified investor pocketed over $166,000 within two days using the DeFrogs token.
In just 2 days, this trader made $166K with only 0.26 $ETH($613)!
This trader spent only 0.08 $ETH($190) to buy 100 #DEFROGS using a high gas of 0.178 $ETH($423), then sold 60 #DEFROGS for 27.8 $ETH ($67K).
He currently has 40 #DEFROGS($100K) left, the total profit is ~166K! pic.twitter.com/g0VtlKoKGM
— Lookonchain (@lookonchain) February 8, 2024
The trader initiated the transaction by investing 0.258 ETH ($613) to acquire 100 DEFROGS tokens, for which they paid 0.08 ETH ($190). Subsequently, a transaction fee of 0.178 ETH ($423) was incurred.
As the value of the token surged over the following days, the trader capitalized on the momentum, selling 60 DEFROGS for 27.8 ETH ($67,000). Notably, DEFROGS is a meme coin inspired by the PEPE crypto project, which debuted on February 7, using the innovative ERC-404 standard.
The success of these traders shows the growing prominence of the unofficial ERC-404 token standard within the cryptocurrency ecosystem.
This innovative standard merges the functionalities of ERC-721 and ERC-20, providing developers with a tool to enhance liquidity for their projects. As a result, tokens built on the ERC-404 standard are rapidly gaining traction, captivating the attention of crypto enthusiasts worldwide.
The post Here’s How This Trader Turned 1 ETH into $59K in 11 Hours appeared first on CryptoPotato.