Cryptocurrency trader turns $17k into $1.2 million in 8 minutes

A cryptocurrency trader’s perfect timing investment in Hive AI (BUZZ) has seen their initial bet record a 75-fold growth as the token gained popularity, mainly powered by community initiatives.

Bạn đang xem: Cryptocurrency trader turns $17k into $1.2 million in 8 minutes

The trade, executed on the decentralized exchange (DEX) on Solana (SOL) Raydium, involved the BUZZ/SOL trading pair and utilized the high-risk strategy of sniping, according to data shared by on-chain cryptocurrency analysis platform Lookonchain in an X post on January 3.

Specifics of the trade indicated that the trader acquired 268.12 million BUZZ tokens, representing 26.8% of the token’s liquidity pool, shortly after its launch. To secure priority on the Solana blockchain, they paid a 49 SOL fee (approximately $10,000) to ensure their transaction was processed ahead of other buyers.

Within eight minutes, the trader sold all their BUZZ tokens for 6,090 SOL, generating a net profit of 6,008 SOL ($1.25 million).

Possible concerns regarding the trade

Although the trade can be viewed as sheer luck or perfect timing, particulars of the transaction could elicit possible concerns regarding the use of insider information. 

Xem thêm : Week in RWA: Sector Suffers Major Blow Following Bitcoin Sell-Off

For instance, the trader’s ability to secure 26.8% of the token’s liquidity at launch suggests possible advanced knowledge of the timing and pool structure.

The unusually high transaction fee of 49 SOL indicates confidence in the token’s rapid appreciation, potentially pointing to privileged information. Additionally, the swift exit just eight minutes after purchase, ahead of any corrections, raises further concerns.

BUZZ was launched on the Solana blockchain to make decentralized finance (DeFi) more accessible and understandable through interoperable AI agents. 

Since the platform’s launch in late December 2024, the cryptocurrency has generated a buzz within its online community, with the founder initiating sustained network development to improve the ecosystem.

For instance, in an X post on January 3, Hive AI announced an upcoming upgrade enabling users to create autonomous on-chain agents with natural language prompts. 

Under these upgrades, the system seeks to select tools, models, and runtime, then deploys a scheduler to execute tasks seamlessly, aiming to bring automation on-chain.

Xem thêm : Ethiopia to Introduce Guidelines for Cryptocurrency Transactions, Following NBE’s New Proclamation

Meanwhile, the project has also received criticism for harboring features of a scam, considering its rapid growth. For instance, one X user described the project as a possible “LARP” (Live Action Role Play), a term for projects with exaggerated or false claims or scams.

Haha $BUZZ Hive AI is full larp.
You guys pumping it to millions without brain.
It’s just using random generated data for sentiment etc. Its a full larp platform. Have fun getting farmed. You will never learn.

9DHe3pycTuymFk4H4bbPoAJ4hQrr2kaLDF6J6aAKpump pic.twitter.com/TswhGj3sUB

— VJoMuXNDTJ❤ Memecoin (@KeshaLuz98232) January 3, 2025

BUZZ onchain outlook

A review of BUZZ on-chain data shows that the token currently controls a market capitalization of $55.14 million, with the number of holders standing at almost 19,000, at a valuation of $0.05515.

Meanwhile, BUZZ adds to the growing number of new cryptocurrencies that have seen early investors reap significant profits. These gains have mostly emanated from meme coins capitalizing on social events to reward early investors. 

Featured image via Shutterstock