A cryptocurrency trader has made headlines by securing a profit of $131.72 million through a strategic investment in Ether (ETH).
This notable trade was made during the 2022 bear market, after which the individual held onto the assets through volatile market conditions.
The Investors Strategy
Blockchain analytics firm Lookonchain has identified an Ether address that made a $131.72 million profit after investing during the 2022 bear market when others were losing confidence due to declines in asset prices.
“This is a smart diamond hand, buying $ETH in the bear market and selling $ETH in the bull market, making $131.72M!”
The wallet shows a purchase of 96,639 ETH from Coinbase between September 3 and 4, 2022, when the asset was trading at approximately $1,567. For two years, they held onto their holdings despite major market fluctuations. This approach proved very profitable, as the asset’s value recovered in the subsequent years.
In March 2024, they moved more than 72% of their initial investment, equivalent to 70,000 ETH, through multiple transactions to the crypto exchange Kraken.
At the time of these transfers, the market price of Ether had surged to $3,062, resulting in transfers worth $214.34 million. Despite these movements, the address still holds 26,639 ETH from the original purchase, currently valued at $68.81 million.
This incident shows the concept of “diamond hands,” a term used to describe individuals who hold onto their investments amid market volatility and price fluctuations. Such investors resist the urge to sell their assets during market dips, believing in the long-term potential of their trade.
Other Similar Events
The cryptocurrency market has seen other notable success stories recently. For instance, a Shiba Inu (SHIB) investor with diamond hands made a $1.1 million profit on a $2,625 investment after holding for three years.
Reports show that after being dormant for 3.5 years, this investor finally sold SHIB at a profit. They spent 2 ETH ($2,625) to buy 48.09 billion SHIB on February 1, 2021, and sold it for 278.7 ETH ($1.1 million), achieving a gain of 419 times their initial investment.
Similarly, just two weeks before, another trader turned $3,000 worth of Pepe (PEPE) meme coin into $46 million within one year, equivalent to a 15,718x gain.
This was possible due to the reemergence of the GameStop saga, which caused a rally in the price of certain meme coins at the time.