Crypto trader Unipcs, also known as the "Bonk Guy," netted a 700% on MAGA (CRYPTO: MAGA), a meme coin based on the red Make America Great Again cap used by former President Donald Trump.

What Happened: Bonk Guy revealed that he invested six figures through multiple wallets in MAGA when it traded around a valuation of $4 million. MAGA is currently trading at a valuation of around $60 million, with a 197% single-day surge sending it to its all-time high price.

Currently, the trader has multiplied his investment by 700% in four days, despite the debate about the prospects of meme coins.

However, he cautions investors about the reduced risk-to-reward ratio at higher valuations. Bonk Guy believes there will be many Trump-related meme coins this cycle after he becomes "the main character." He terms it a "Degen play, high risk high reward."

Also Read: Donald Trump's Election Odds Just Spiked To 51% According To This Crypto Prediction Market

Why It Matters: As investment thesis, the trader pointed out that besides MAGA being Trump's chant and being used a lot, it is all about the red "hat" which will be very visible once the campaign starts. He drew a parallel between the Dogwifhat's (CRYPTO: WIF) hat and the meme coin but on a smaller scale.

The trader notes his mistake while noticing WIF and not investing. Since then, he has decided that if he notices something that could potentially gain traction in the future, he will invest even if there is no guarantee of its success.

What's Next: The influence of meme coins Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Image: Shutterstock