A cryptocurrency investor made a profit of $131.72 million by investing in Ether during the 2022 bear market and holding it through uncertain market conditions for two years.
Blockchain analytics firm Lookonchain identified an Ether (ETH) wallet address of an investor with diamond hands, showcasing the long-term losses associated with panic selling. Diamond hands refer to individuals who hold on to their investments amid market volatility and price fluctuations.
Source: Lookonchain
According to Lookonchain, the investor purchased 96,639 ETH from the Coinbase crypto exchange between Sept. 3 and 4, 2022. At the time, Ether was trading at roughly $1,567.
Reaping profits through hodl strategy
As a result, the whale investor acquired $151.42 million worth of ETH tokens in the process.
Ethereum purchase timeline of the diamond hands Ethereum investor. Source: Lookonchain
In March 2024, the investor moved more than 72% of the initial investment (70,000 ETH) to the crypto exchange Kraken through multiple transactions. At the time of transfer, the market price of Ether was $3,062, representing $214.34 million worth of transfer.
Onchain history of Ethereum deposits by a diamond hands investor. Source: Lookonchain
Apart from the recent Kraken transfers, the investor holds 26,639 ETH in their wallet from the original purchase, which currently stands at $68.81 million.
Diamond hand investors eye memecoins
Throughout the years, the buy-the-dip mindset has enabled crypto investors to record high long-term returns.
Related: Diamond hands: Mt. Gox creditors hodl Bitcoin despite 10-year wait
Recently, a Shiba Inu (SHIB) investor with diamond hands made a $1.1 million profit on a $2,625 investment following a three-year wait. Lookonchain noted:
“After being dormant for 3.5 years, the super diamond trader finally sold $SHIB at a profit. He spent 2 $ETH($2,625) to buy 48.09B $SHIB on Feb. 1, 2021, and sold it for 278.7 $ETH($1.1M) just now, a gain of 419x!”
The trade occurred two weeks after another savvy crypto trader turned $3,000 worth of Pepe into $46 million by trading the Pepe (PEPE) memecoin during the reemergence of the GameStop saga, which boosted the price of certain memecoins.
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