While intricate trading strategies can yield substantial returns for investors, a recent incident involving an Ether whale showcases the remarkable efficacy of a simple buy-and-hold strategy.
Back in February 2016, Ether (ETH) was priced at approximately $5 per token. During that time, a savvy investor acquired 16,636 ETH through the crypto exchange ShapeShift. According to the Chinese crypto data outlet EmberCN, the tokens were purchased for $5.23 each, totaling an investment of $87,006.
After holding these tokens for over eight years, the trader began to liquidate some of their holdings. On September 16, they sold 350 ETH at a price of $2,340 per token, resulting in an initial profit of $819,000—nearly ten times their original investment. Post-sale, the trader retained over $38 million worth of ETH.
In a different scenario, a trader managed to acquire a $1.5 million non-fungible token (NFT) for just $23,000, showcasing the potential of both simple and complex trading strategies.
In 2020, the concept of fractionalization—dividing ownership of valuable digital assets—gained traction. Among the NFTs that were fractionalized during that period was CryptoPunk #2386, a distinctive Ape-themed NFT adorned with shades and a headband. This NFT was divided into 10,000 shares, distributed among 257 owners using a now-defunct platform known as Niftex. Although the platform is no longer operational, its smart contracts remain active on the blockchain, preserving their functionalities.
The smart contract enabled traders to propose a “shotgun” bid to acquire the fractionalized NFT by setting a purchase price. If no counteroffers were made within 14 days, the asset would be transferred to the bidder. On August 28, a trader initiated a bid of 10 ETH to acquire the coveted NFT. While there were attempts to thwart the acquisition, the CryptoPunk was ultimately secured.
In contrast, not all traders experience success. On September 14, blockchain analytics service Lookonchain reported that crypto investor James Fickel suffered a staggering $43 million loss on a bet, bringing his total debt to $132 million. The early investor in ETH and founder of the Amaranth Foundation had anticipated that Bitcoin’s (BTC) price would climb against ETH, leading him to place a wager on this prediction. Unfortunately for him, Bitcoin outperformed ETH, resulting in significant financial loss.
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