A Solana trader, identified by the pseudonym XCkM, recently demonstrated the volatile nature of the cryptocurrency market by turning an $80,000 investment into $1.2 million through the purchase of AURA, a meme coin built on the Solana blockchain.
Initially, XCkM bought 2 million AURA tokens for just $4,943 during the token’s launch, but he steadily increased his position over the following months. By July, his total investment in AURA had grown to $80,000 as the token’s value surged.
AURA’s price spike catapulted the trader’s holdings to an impressive $1.22 million at the token’s peak, as the asset reached a market cap of $75 million.
AURA Token, Source: CoinGecko
However, rather than securing his profits, XCkM decided to hold onto his position, a decision often referred to in the crypto community as “diamond-handing.” This strategy, driven by the hope of even greater returns, ultimately backfired as AURA’s price began to collapse, losing 86% of its value and dropping to a market cap of $8.9 million.
Interestingly, XCkM’s portfolio is still valued at over $1,327,421.86 million, largely due to other successful investments in a range of meme coins and niche tokens. This contains Dogwifhat ($962.72K), SAD HAMSTER ($173.49), SIGMA holdings ($33.51K), and Nomnom ($1.02K), among other crypto.
AURA’s price has likely found a bottom and is showing signs of a potential bullish reversal, with a round bottom pattern forming on the daily chart.
This could develop into a cup and handle pattern, potentially boosting the price by 222% to $0.03. If this scenario plays out, crypto trader XCkM’s current AURA holdings could increase from $144,000 to $460,000, giving him a five-fold return on his original $80,000 investment. However, the upcoming Solana offloading by FTX may still influence AURA’s price trajectory.
According to Solscan, despite being a skilled investor with a two-year-old wallet, trader XCkM showed greed by keeping AURA for an extended period in the hopes of more price increases.
Also Read: Crypto Trader Loses $16 Million In FRIEND Token Bet
