Ethereum Trader Takes $1.5M Loss on CULT Token

Ethereum trader, 0xb01, just sold his entire stack of 300M CULT tokens, just 25 days after acquiring them on the CULT token generation event (TGE). He initially bought his tokens for a total of 555 ETH, or just over $2.16M worth. After a month, the CULT token price has fallen 72%, with 0xb01 only managing to cash out $595K from their investment, locking in the loss.

A TGE, or Token Generation Event, is the initial launch when a token is first made available. Committing such a large capital sum at this early stage is an extremely high-risk strategy. A 72% drop in under a month highlights the intense volatility of new memecoin launches, where initial hype can rapidly dissolve.

The CULT token was a meme token launched by the team behind the popular Ethereum NFT collection, Milady Makers. The team and community surrounding the NFT collection is known for their controversial and often edgy behavior on X, with many describing the community as almost “cult-like”. Legendary trader, GCR, has also famously been an investor in the Milady Maker NFT collection as well, with 150 Milady Maker NFTs on his public wallet. He also claimed 174M CULT tokens in the airdrop distributed by the team, which he still holds.

This creates a sharp contrast between the two investors. While 0xb01 purchased their tokens on the market, GCR received his via an airdrop, meaning his initial cost basis was zero. GCR's decision to hold his position, even as a major buyer like 0xb01 capitulates, is a significant data point for other market participants.