Turning $11,000 into Half a Billion through Memecoins

Jake Claver, the CEO of Digital Ascension Group, shares a remarkable story about a client—a man from Dallas—who transformed an initial investment of $11,000 into close to $500 million by trading memecoins. These cryptocurrencies are often driven by cultural themes and lack inherent utility, making their values extremely volatile.

Claver began his relationship with this client as a friend, who was initially trading his own cryptocurrencies. “He utilized a sniper bot, which is automated software for rapid trading of newly listed tokens,” Claver noted. “He ended up making millions by focusing on meme coins.”

Eventually, Claver invited a friend to one of his registered investment advisor (RIA) family office events, leading to a significant portion of the trader’s assets being moved into XRP, an established token on the Ripple network. “We experienced a 6x gain on XRP; he did quite well,” Claver remarked.

Not too long ago, this client sought advice on managing his crypto gains, specifically on how to grow his assets, manage taxes, and plan for succession.

However, traditional asset advice was largely absent for crypto holders. After several introductions, Claver connected with a number of family offices and recognized a clear need for advisory services in this area. This gap prompted him to establish Digital Ascension, which has quickly grown to manage around $1 billion in cryptocurrencies for affluent families.

“We started taking equity stakes last October in partnership with Anchorage, handling the management aspect,” Claver explained. “In just a year, we shifted from zero to $1 billion in total cryptocurrencies. We’re assisting 10 families and have about 1,500 other clients with portfolios spanning from $500,000 to $5 million. We confidently claim to be the largest RIA in the crypto space.”

A New Approach to Asset Management

According to Claver, Ascension employs a broad range of private client services adapted for cryptocurrencies. This includes estate planning, tax management, accounting, bill payments, and more—positioned alongside asset management that involves allocating funds into various cryptos, setting up credit lines, and earning returns, all in a regulated framework. “We don’t use DeFi,” he clarified.

“Our operations rely on institutional custody and insurance for assets, involving tripartite agreements that help mitigate loss risk.” He contrasted this with on-chain practices, emphasizing that clients can benefit from additional institutional services and assurances.

The cornerstone of this model is custody, facilitated by Anchorage, a pioneering US-regulated cryptocurrency custodian recently chosen by BlackRock for managing crypto ETF assets.

“Anchorage’s custodial structure ensures that clients are never simply creditors; these are always your assets, residing in your account. Essentially, it functions like a cryptocurrency account at Schwab,” Claver described.

This setup permits much more intricate and nuanced arrangements than the typical cold wallet approach.

“You can designate a spouse as a beneficiary on your account,” he noted. “If a fiduciary’s approval is necessary, or in the case of trusts, you can include multiple signatories to manage access to assets based on specified conditions.”

While trading cryptocurrencies can be intense and volatile, the market has generated significant wealth in recent years, with projections suggesting a 40% increase in the number of crypto millionaires globally by 2025.

That need for practical advice about crypto asset management is underscored by a recent study from the Swiss software firm Avalock, highlighting how traditional asset managers are pressured to cater to wealthy clients interested in digital assets. For instance, in the UAE, 63% of ultra-high-net-worth individuals have either already switched or are considering switching their management services.

Bridging Generational Gaps in Investment

Interestingly, many times it’s the kids of the ultra-wealthy who bring digital asset knowledge to the older generation. Growing up in a world where cryptocurrencies exist, the younger members of family offices are actively buying tokens on platforms like Coinbase and Binance, seamlessly using their laptops and phones.

Claver has found that his initial discussions typically take place with these younger family members, often led by the firm’s presence on social media. Then, the more traditional call with the elders follows.

“We usually engage with the family head, explaining that this is essentially the next iteration of the internet, showcasing protocols and networks that could serve as public infrastructure. It’s a way to hedge against other investments,” Claver explained.

Often, the second or third generation is allocated millions to experiment in digital assets, generally keeping it under 1% of their portfolios, according to Claver.

If a client wishes to invest significantly in a specific cryptocurrency—like Bitcoin or Ethereum—Claver’s team assists with that process. “If you lack a continuity plan, you can place assets in institutional custody. This way, you have security and a strategy instead of simply scribbling down keys on paper. Various people might need to access a wallet, requiring quarterly reconfiguration for reconciliation,” he added.

Claver acknowledges that the landscape has changed since Bitcoin’s early days, particularly in terms of holder demographics, many of whom are now in their 40s and beyond. When significant wealth needs protection, perspectives inevitably shift.

“With a few hundred thousand or even a million, managing risks might feel like stuffing cash in a mattress. I totally understand that,” he said. “But once you start dealing with $20, $50, $100 million—or even $1 billion—that’s a different ballgame entirely.”