The crypto asset called Chainlink has been the market’s best-performing asset for two years running. It has made many early investors rich, and even those who hopped on the bandwagon late as the asset continues to tap new highs.
But did the asset really turn $10 into nearly a million bucks in just six months? And if so, how?
The Cryptocurrency Market Altcoin Standout For Two Years In A Row
Crazy and unusual things happen across the cryptocurrency market. The wild west atmosphere is ripe for pump and dumps, or irrational exuberance when hype and speculation run amok.
There’s also the occasional asset that’s just so hot, it explodes in value simply due to investors believing in its long term price growth or the asset’s underlying technology. Such is the case with Chainlink, a crypto token with true value and use case, that’s topped all other assets across the space for two years now.
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Since the 2017 low, Chainlink is up over 7,000%. From the 2018 crypto market bottom, Chainlink has grown by over 5,000%. In 2020 alone, the asset is up over 400%.
It’s been setting new record high after high and entered full price discovery mode. But how did it potentially earn some lucky trader as much as a million dollars out of just $10?
$LINK +9,200,000% from the March lows 😃 pic.twitter.com/crPHjHTrXW
— Alex (@classicmacro) August 4, 2020
Chainlink Flash Crash Turns Ten Bucks Into a Million Dollars
When Black Thursday hit in mid-March, cryptocurrencies were decimated. Bitcoin dropped from over $10,000 to under $4,000, and the rest of the market tanked. The stock market, precious metals, and everything else suffered in the severe, panic-induced liquidity crisis.
On cryptocurrency exchange Binance, Chainlink on the LINKUSD trading pair flash crashed all the way down to $0.0001 per token. For any traders who had orders placed that low or happened to catch the bottom of the wick, and held it through the recent high, would have had over 9,000,000% gains.
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With LINKUSD nearing $10 per token, just a $10 investment at the $0.0001 low held to such a high point, would result in a million dollars in ROI.
Actually profiting from a flash crash is possible, however, isn’t probable. Given that this does happen from time to time, it may be worth keeping a small amount of capital ready and waiting to catch a wick to nearly zero. It could result in making a million out of just ten bucks.
In related news, a flash crash happened over the weekend in Bitcoin, however, it was potentially the result of a strategic sell order placed by a whale. These anomalies happen for various reasons and can be difficult to prepare for. But as Chainlink has shown, taking advantage of them properly can be insanely profitable.