Recap · August 31, 2025 · 27:11
Letterbomb: The Dark Side of Trenching, Best PNLs, Perps and More | TG Podcast
The Signal
South Korean trader Letterbomb describes the brutal path from borrowing roughly $550,000 to gamble on perpetuals to repaying the entire debt through Solana memecoin trading. The turnaround was not one miraculous hit but relentless repetition, post-loss reflection, narrative reading, and enough smaller wins to compound—though his 40- to 50-hour sessions show the personal cost of that obsession.
Key Takeaways
- 01
Leverage became borrowed ruin
Letterbomb chased green candles across perpetual markets for more than two years, using his developer salary to borrow from multiple banks. At the bottom he owed roughly $500,000–$550,000 and was still approaching the market like a casino.
- 02
Reflection replaced reaction
Crying after losses unexpectedly created a pause in which he could calmly inventory the market, his position, and his reasons for trading. That habit grew into narrative research and more deliberate decisions instead of reflexive momentum chasing.
- 03
The debt fell through repetition
Beginning around October 2024, Letterbomb started earning more than his $15,000–$20,000 monthly obligations and cleared the debt in about three months. His largest win during that phase was around $85,000; the result came from winning repeatedly rather than one rescue trade.
- 04
Bag-working is part of the bet
He treats public promotion as active participation in a token's outcome, even sending 1% of one supply to Pump.fun founder Alon in hopes of expanding its ceiling. The calculation is explicit: sacrifice a portion of the bag for a small chance that attention creates a much larger market.
- 05
Every trader needs a weapon
Letterbomb's edge is reading narratives; other traders may excel at research, scalping, charts, or risk. His advice is to choose that direction carefully and improve within it rather than imitate a style that does not fit.
On the Record
“I paid all of my debts with meme coins.”
“Since I started trenching, all I do is just wake up, eat, and trade.”
“I'm not going to stop trading until I die.”
“You have to set your own direction.”
The Breakdown
From Stellar profits to a $550,000 hole
Letterbomb's first crypto trade was Stellar, but early profit led him toward perpetuals and increasingly indiscriminate bets. He describes two to two-and-a-half years chasing whichever candle was green. A job as a developer gave him access to bank credit, which he converted into trading collateral until the debt reached roughly $500,000–$550,000.
Crying as a circuit breaker
After discovering decentralized exchanges and Solana memecoins, he remained unprofitable for another 18–24 months. The desperation was literal: he cried while trading. Yet the aftermath forced a calm review—what he was doing, what the market was doing, and why—and that structured reflection became the beginning of research and narrative skill.
Three months to erase the debt
Letterbomb kept trading even when only 0.1–0.3 SOL remained in his Phantom wallet. Around October 2024, the repeated wins finally exceeded monthly debt service of $15,000–$20,000, and he cleared the balance within roughly three months. His biggest individual gain in that stretch was about $85,000, but many five-figure wins did most of the work.
Nine hundred SOL from a moving car
His later record was roughly 850–900 SOL, around $150,000–$170,000 in the conversation, on a coin called Roaring Kitty. He entered while on Jeju Island and watched the position rise while driving; being unable to constantly intervene helped him hold. It is a rare moment where forced distance improved the trade for someone otherwise glued to the market.
The extreme form of bag work
Letterbomb once stayed awake more than 40 hours promoting his own Hyperliquid project, including at his best friend's wedding. He also sent Alon 1% of a coin's supply, reasoning that a smaller stake in a $10 million outcome dominates a full stake in a dead $100,000 market. The project eventually failed, but he describes it as valuable experience rather than a reason to stop.
Streaming as narrated research
Axiom offered him a partnership after seeing his wallet volume, but he stayed with the terminal because it was comfortable rather than for payment. Streaming improves his process: saying thoughts aloud—whether a token looks good or needs more research—forces explicit reasoning that silent trading does not. His short-term ambition is nine figures before GTA VI; the longer horizon is simply to keep playing for life.
Find the thing you do better
For newer traders, Letterbomb avoids a universal setup and instead asks them to identify a personal weapon. His is narrative recognition, while others dominate charts, execution, research, or risk management. That specialization came through repeated small-account practice, not starting capital—though he openly admits the grind has included 50-hour sessions and a recent 40-hour live stream.
Distilled from the episode transcript · Counterparty Recap Desk
