A cryptocurrency trader has turned a meager $51 investment into a staggering $10,800 in just two hours, sparking both awe and skepticism within the volatile digital asset community, trading Solana ($SOL) for a gain of 210x.
The feat saw the individual leverage the decentralized finance (DeFi) ecosystem of the Solana blockchain, executing a series of trades on a recently launched token called NVDA. The trader’s gains were first reported by on-chain analytics platform Lookonchain on the microblogging platform X (formerly known as Twitter).
According to data from DexScreener, a platform that tracks DeFi activity, shared by Lookonchain, the trader initially bet around $51 in the form of 0.5 SOL, which they then used to buy NVDA tokens at a price of 0.00002816 SOL per NVDA. The trader then sold their holdings after the price of the token rose.
The trades were executed on Solana’s second-largest decentralized exchange Raydium, which currently has around $147 million in total value locked by liquidity providers facilitating trades. The token being traded, NVDA, was launched the same day the trade occurred, and does not represent a tokenized version of Nvidia Corporation’s stock, despite using the same ticker.
Unlike traditional securities, where issuance is subject to stringent regulations and oversight, the decentralized nature of DeFi platforms allows anyone to mint tokens with any chosen ticker symbol. This lack of gatekeeping, while offering democratization of access, also creates fertile ground for manipulation and fraudulent activity.
This isn’t the first time trader make incredible returns through little-known cryptocurrencies. As reported, earlier this year a trader turned $3,000 worth of cryptocurrency into over $650,000 in less than a day by trading an altcoin with the ticker SNOW.
Featured image via Unsplash.
