A cryptocurrency trader has managed to turn around $5,100 into nearly $700,000 in just two days trading a little-known cryptocurrency associated with a platform for token launches that’s referred to as Ethereum’s answer to Pump.fun.
According to on-chain analysis service Lookonchain, a cryptocurrency trader with the handle frenulum.eth has managed to make a 134x return on the cryptocurrency, $VISTA, after spending 2.05 ETH worth little over $5,000 to buy 52,822 VISTA tokens.
In just two days, the trader saw the value of these tokens skyrocket and then sold them for 276.5 ETH worth nearly $700,000.
The VISTA token was launched by Ethervista, a token launch platform looking to combat rug pulling scams by locking creator liquidity for a period of five days. Rug puls are scams that see bad actors pull liquidity out of decentralized finance platforms shortly after tokens are launched, leaving other investors with tokens they can’t sell because of a lack of liquidity.
Often, this happens when insiders hold a large share of the total supply – a common practice in projects looking to fund their operations through the launch – and then immediately dump their tokens on investors.
As reported, earlier a cryptocurrency trader has managed to make around $300,000 in a single month shorting MakerDAO’s MKR token, having borrowed 500 MKR from popular decentralized finance (DeFi) protocol Aave on July 19, to then sell the tokens for $1.37 million.
The trader, according to on-chain analysis service Lookonchain, then spent little over $1.07 million in the popular stablecoin USDC to buy back the MKR they needed to repay their debt at a lower price, effectively closing their short position on the cryptocurrency.
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