Cryptocurrencies have emerged as a new and bewildering financial instrument that has taken the world of finance by storm and over the past few years or so, successful traders have amassed great wealth by Trading in these. However, one Trader has made a whopping 413% return in a trading period of one Month by turning $55 million into $283 million, according to a report in Bloomberg.
A jaw-dropping return
The currency either derived from Ethereum, the blockchain that is currently the world's second most popular cryptocurrency after Bitcoin has created wealth for many of those who trade in them.
However, the returns generated by this particular trader might attract a whole new bunch of traders to this currency. The news first surfaced on Instagram on June 11, when the trader or traders behind the account spoke about their jaw-dropping returns. The account which can only be identified by the number '0x00A651D43B6e209F5Ada45A35F92EFC0De3A5184', which is the identification code of the person's digital wallet.
However, it seems the photograph on Instagram about his wallet seems to be genuine. As the trader added in his Instagram post, “One of the cool things about Ethereum is that all wallets around the world are transparent and open for everyone to see. And this is my wallet’s savings.” A short-term profit of $228 million out of an investment of $55 million in one month is however unheard of.
Since the post had been made in Bahasa, it is a fair assumption that the trader or traders might have been Indonesian.
A new era
Cryptocurrencies have ushered in a whole new era in finance and one of its biggest selling points is the fact that it allows people the luxury of anonymity. However, as the market cap of such currencies continue to increase and the number of traders rises, regulators believe that people should deal in these currencies using their real identities.
It is a pertinent concern since the anonymity offered by these currencies will eventually be misused by criminals and identification might actually come into effect pretty soon.
For instance, the owner of Silk Route Ross Ulbricht had used cryptocurrencies to launder his ill-gotten wealth. Now, there is nothing to suggest that the trader who made $228 million in profits did anything wrong but the price movements in cryptocurrencies do raise concerns. For instance, the price of ether was around $8 at the start of 2017 but rose to $400 last month. Currently, the cryptocurrency is priced at $250, which is still a huge jump from $8.
