Gone are the days when striking it big in the crypto market meant taking risky directional bets or diving into complex decentralized finance strategies. Now, some traders are finding success on the decentralized prediction platform Polymarket.
Take, for instance, the case of u/MeLLoN98, a prominent figure in Reddit’s r/CryptoCurrency community. They recently scored an impressive 550% return on investment by purchasing over 90,000 shares in the “Will BTC hit $50,000 in February?” betting contract on Polymarket.
The contract resolved positively after Bitcoin surpassed $50,000 on the Nasdaq-listed Coinbase exchange, reaching its highest level since December 2021. Polymarket allows speculators to buy or sell outcome shares, redeemable for $1 if the prediction turns out to be correct.
In an interview with CoinDesk, u/MeLLoN98 shared their strategy, revealing how they converted 110,000 Moons (the native token of r/CryptoCurrency) into 14,000 USDC on Kraken, then used the funds to purchase 91,409 shares on Polymarket at an average price of about 15 cents. This resulted in an investment of $14,000 yielding a return of $91,400.
This savvy trader plans to further capitalize on their winnings by accumulating more Moons, especially with the upcoming integration of Moons on Arbitrum One through a partnership with Celer Network, which is expected to increase liquidity.
Polymarket offers various other betting contracts related to Bitcoin and Ethereum. For instance, one contract allows traders to speculate on whether the BTC price will reach a record high on Binance by March 31. u/MeLLoN98, known as RedditMoons-10$ on Polymarket, has already purchased over 230,000 shares on the Yes side of this contract, with the potential to turn their $27,000 investment into $230,000 if the prediction comes true.
