A crypto investor’s journey with Aave shows how being patient and holding onto an investment for a long time can lead to big rewards. Starting with a $500k investment in the early days of the decentralized finance (DeFi) project, the investor has turned this modest sum into a staggering $13 million by holding onto the asset for over three and a half years.
Turing $500k Into 13M
While crypto headlines often feature tales of rapid gains and overnight fortunes, this investor’s story highlights the value of holding onto projects with substantial potential. This is about the investor who poured his $500k into Aave, a decentralized finance project & patiently turned it into 13Million.
Back when Aave was known as EthLend, this investor put around $500,000 to get 12.5 million LEND tokens at a low price of $0.04 each. In 2020, Aave changed, and the LEND tokens became AAVE at a rate of 100:1. So, the investor ended up with 125,000 AAVE. Instead of selling right away, they held onto these tokens for three years.
Recently, an on-chain tracker revealed that the investor made a smart move. They sold 30,000 AAVE tokens through a platform called Cumberland, making $3 million a whopping 500% profit on their initial investment. Even after the sale, the investor still holds more than 100,000 AAVE tokens, worth around $10 million.
Long-Term Strategy Triumphs But Missed 2021 Peak
The investor’s smart decision to wait patiently for a long time turned out to be successful. But there’s an interesting twist to the story.
However, it’s worth noting that the investor could have potentially gained more by selling a portion of their portfolio in 2021. When AAVE reached its all-time high of $666 in May 2021, indicating that the recent 30,000 AAVE token sale could have yielded nearly $20 million at that peak.
As Aave currently hovers around $101.4, reflecting an 80% increase since the year began, the investor’s holdings, if Aave revisits its previous peak, could soar to around $100 million. This story teaches us that while some people focus on quick gains, patiently investing in projects with long-term potential can lead to big success.