How This Cryptocurrency Trader Turned $3,000 into $650,000 in 19 hours

Speculating in illiquid cryptocurrencies is risky, but sometimes rewarding. One cryptocurrency trader recently beat the risk of bankruptcy, turning $3,000 into more than $651,000 in 19 hours.

At the time, the trader held 314.9 trillion SNOW, worth approximately $535,000.

Notably, address “0xf8a…F8683” first purchased 386.94 trillion SNOW for 1.31 ETH, worth $2,931. First, he sold 72 trillion tokens for 53.4 ETH, worth $119,000. Thus, a profit of 52.09 ETH ($116,000) was realized.

Since then, traders have sold more SNOW while adding liquidity to the Uniswap ( UNI ) pool. He currently holds 252.2 trillion liquidity tokens and is ready to sell at any time.

Snowman (SNOW) Analysis on Uniswap

Snowman (SNOW) is a low-liquidity, low-market-cap ERC-20 token that only trades on Uniswap. In particular, there is no coin information available on decentralized exchanges, indicating that the meme coin is purely speculative. It exists under the smart contract "0xD1f…a557f".

Additionally, the token has a TVL of $374,100 in its liquidity pool and a 24-hour trading volume of over $4.7 million. Its circulating supply is 888.888 trillion SNOW, with a price below $0.00000001.

Interestingly, the trader’s first purchase was equivalent to 43.5% of the circulating supply. Meanwhile, the address’s current balance is equivalent to 28.3% of all Snowman tokens, exceeding available liquidity.

The trade could be a lucky strike, a successful move by a smart trader, or even an inside job. Still, it illustrates the high volatility of low-liquidity tokens—this time to the benefit of speculators.

However, these deals often don't have a happy ending. Speculators may find it difficult to realize any meaningful profits in a low-liquidity environment, and volatility can turn quickly, leading to huge losses and investor bankruptcies.

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