While complex trading strategies can yield significant returns for investors, a recent example from an Ether whale proves that a simple buy-and-hold approach can also produce impressive results.
In February 2016, Ether was trading at around $5 per Token. At that time, an investor purchased 16,636 ETH through the cryptocurrency exchange ShapeShift, at a price of $5.23 per Token, for a total cost of $87,006.
After holding for more than eight years, on September 16, the investor sold 350 ETH for $2,340 per Token, increasing the value to $819,000, nearly 10 times the initial Capital . After the transaction, the investor still had more than $38 million in ETH.
Trader Moves Millions in ETH After Eight Years. Source: Etherscan
While a simple buy-and-hold approach can yield significant returns over time, a more complex move allowed one trader to purchase an Non-Fungible Token worth $1.5 million for just $23,000.
In 2020, the practice of Chia ownership of high-value digital collectibles became popular. One of the Non-Fungible Token that was Chia into multiple pieces at the time was CryptoPunk #2386, a rare Ape-themed Non-Fungible Token with sunglasses and a headband.
This Non-Fungible Token was Chia into 10,000 pieces with 257 owners, via the now-defunct Niftex platform. While the platform is no longer active, its smart contracts continue to exist on the blockchain, allowing its features to function.
The smart contract includes a method for traders to submit “shotgun” bids to purchase the fractional Non-Fungible Token by setting a purchase amount. If no one objects to the bid, the asset is transferred to the bidder after 14 days.
On August 28, a trader offered to buy back the entire Non-Fungible Token for 10 ETH. Despite several attempts to stop it, CryptoPunk was eventually successfully bought back.
On the other hand, some investors were not so lucky. On September 14, blockchain analytics platform Lookonchain reported that crypto millionaire James Fickel lost a $43 million bet , increasing his debt to $132 million.
Fickel, an ETH investor and founder of research firm Amaranth Foundation, had expected Bitcoin to outperform ETH. However, the fact that Bitcoin outperformed ETH caused Fickel to lose his bet.
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Itadori
According to Cointelegraph
