According to cryptocurrency analysis firm LookOnChain, a trader turned $1.9K into $3.67 million in just two hours. The rise in the trader’s portfolio’s value translates to a growth of about 1925x, or about 193,057.8%
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According to the analysis firm, the trader spent 7.84 Solana (SOL), worth around $1.9K, to buy 89.19 million ELIZA tokens. The trader sold 49.9 million ELIZA for 7091 SOL, worth about $1.72 million. The trader has about 39.7 million ELIZA, worth $1.95 million, and is still actively selling the asset.
Should You Buy This Unknown Cryptocurrency?
The answer is that you most likely should not buy such unknown assets without proper research. There is a high probability that the cryptocurrency will face a massive correction soon. Such projects tend to pump up before facing a significant price dip when investors begin to sell their holdings.
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The current bull market has led to many projects pumping. Bitcoin (BTC) hit a new all-time high of $93,477.11 last week. BTC’s rise to new highs has ushered in significant interest in the cryptocurrency market. Malicious actors may prey on newcomers who do not have much knowledge about the sector. While crypto has witnessed incredible growth over the last few months, its growth also comes with an increase in bad actors.
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The bull run will most likely continue for the foreseeable future. Many believe Donald Trump’s leadership will come with leniency towards the cryptocurrency space. Trump has been very vocal about his support for crypto. With the bull run moving full steam ahead, we may witness many new projects emerge. One must take caution not to put their money into unknown projects. Investors should do due diligence before investing in any new cryptocurrency initiative.
