A Trader Profits $448K by Monitoring #Binance's New Listings!

Just 1 minute after #Binance announced the listing of $VELO, this trader swiftly spent 100 $ETH($389K) to buy 2.45M $VELO, now worth $837K — an unrealized profit of $448K!

A cryptocurrency trader has made a swift move that could net them a potential profit of $448,000, according to a report by Wu Blockchain on Friday.

The trader acted quickly after Binance announced the listing of $VELO, a lesser-known token. Within a minute of the announcement, the trader spent 100 ETH (approximately $389,000) to purchase 2.45 million $VELO tokens via the 1inch decentralized exchange.

This rapid action paid off as the tokens quickly appreciated in value. Purchased at an average price of $0.158, the tokens rose to $0.342 at the time of reporting. This price surge brought the total value of the 2.45 million tokens to approximately $837,000.

The trade was executed swiftly, with the trader moving 2.45 million $VELO tokens to another wallet, possibly indicating a plan to sell. Whether the trader will choose to lock in the $448,000 profit or hold for further gains remains to be seen. However, the swift transfer suggests careful planning to maximize returns.

Binance, one of the largest cryptocurrency exchanges globally, wields significant influence over token prices with its listing announcements. The $VELO listing is a prime example, as the token’s value skyrocketed in response to the news.

Traders who can quickly act on these announcements often stand to make substantial profits. However, this case also highlights the broader impact of centralized exchanges like Binance on market dynamics.

Tokens listed on Binance gain immediate credibility and liquidity, attracting both retail and institutional investors. The phenomenon underscores the role of major exchanges in shaping the cryptocurrency landscape.

While the trader’s profit of $448,000 showcases the rewards of swift decision-making, such strategies come with inherent risks.

Rapid price increases can just as quickly reverse, leading to significant losses for traders unable to exit positions in time. Additionally, high gas fees or slippage can erode potential profits.

In this instance, the trader demonstrated exceptional precision and timing, but other participants attempting similar trades may not achieve the same results. The volatility of newly listed tokens often creates a highly unpredictable trading environment.