Altcoin Shorts and MEME Coin Strategies: An Extreme Divergence in Profits

Recently, a trading account has attracted a lot of attention—the way it operates in the altcoin and MEME coin sectors is completely opposite to most people's approaches.

**Short Position Building Rhythm**

On January 5th, during PEPE's surge, it continued to establish short positions over two hours, currently holding about $120,000 in positions with an average price of $0.007. This timing is interesting—taking a contrarian stance when market enthusiasm is high.

After LIT was launched, this account became even more aggressive in building its short positions, reaching a scale of $11.2 million (average price $2.7). On the Hyperliquid platform, it has become the largest short position holder in LIT, ASTER, and UNI. Such a position size can indeed exert some influence on the markets of these tokens.

**Profit Ledger**

Since November, it has held over 20 altcoins, with an initial investment of $20 million. The total holdings have now increased to $40.7 million. Today’s market rally narrowed unrealized gains by $800,000, but there are still about $4.6 million in unrealized profits. Even more astonishing, over the past two months, it has accumulated profits of $13 million, with total profits this year reaching $81 million.

**Contrasting Impact**

Interestingly, another account adopted an entirely opposite strategy during the same period—buying a basket of altcoins with a similar token structure to the first. The result? Total holdings plummeted from $25 million to $2.33 million, with a total loss of $42.7 million this year. Two accounts, nearly identical assets, but completely opposite outcomes.

This comparison actually illustrates what: the market volatility of altcoins and MEME coins is terrifying. Choosing the wrong direction can mean the difference between life and death. Top traders use real money—often tens of millions of dollars in positions—enough to stir up waves on certain platform-specific tokens.