In just five hours, the market capitalization of the AI-focused token $BUZZ surged to an impressive $40 million.
Among the early investors, one wallet, Fz2eT…7ttvp, turned an initial $6,000 investment into $1.25 million within minutes, showcasing the high volatility and profit potential of this new token.
Smart Money Makes a Bold Move
A savvy investor, often referred to as “smart money” or a “rat account,” made a calculated bet on $BUZZ. At 10:11 AM, this individual purchased 268 million tokens in a private sale for 32.75 SOL (equivalent to $6,821). This single transaction accounted for 26.81% of the total token supply, with an average cost of just $0.00002544 per token.
A Quick Exit with Massive Gains
The token was listed on Raydium at 10:13 AM, and the investor wasted no time cashing out. Within five minutes, they liquidated their entire position at an average price of $0.004715. This swift move resulted in a staggering profit of $1.257 million, marking a return of 18,530%.
The Opportunity Cost of Holding
While the investor secured life-changing profits, their quick exit came at a cost. The token experienced a subsequent seven-fold increase in value, which could have yielded an additional $9.18 million in unrealized gains had they held their position longer.
Conclusion
The meteoric rise of $BUZZ underscores the high-risk, high-reward nature of early-stage token investments. While this smart money account executed a masterful short-term trade, the story also highlights the challenges of timing the market perfectly in the volatile world of cryptocurrency.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.