Trader turns $2.2K of SOL into $2.26M in 8 hours with new memecoin

Zoltan Vardai14 hours agoTrader turns $2.2K of SOL into $2.26M in 8 hours with new memecoinThe trader made an over 993x gain on their initial investment, spurring insider trading allegations.20956 Total views30 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksA savvy trader turned $2,275 worth of Solana tokens into a profit of $2.26 million in just eight hours.

The memecoin trader’s wallet, known as “sundayfunday.sol,” made an over 993x gain on their 13 Solana (SOL) token investment into newly-launched memecoin 1DOL, according to a May 19 post by Lookonchain:“8 hours ago, He spent 13 $SOL ($2,275) to buy 242M #1DOL, which is currently worth $2.26M!”

Memecoins like Dogwifhat (WIF) and Pepe (PEPE) have taken the spotlight since the Bitcoin halving. Despite having no underlying utility, memecoins often reach multibillion-dollar valuations, making millionaires for some investors.

The over 900x gain is no coincidence, as the wallet is also the largest pre-sale participant of the Book of Memes (BOME) token. The trader bought over $72,000 worth of BOME tokens at presale, which was worth over $40 million at its peak.

Despite taking profits on some of his holdings, the trader remains the largest BOME holder, according to Lookonchain:“He sold 530 billion $BOME for 38,305 $SOL ($7.66M) and currently holds 894 billion $BOME ($10.5 million), still the largest individual holder of $BOME.”

The 1DOL memecoin launched on May 18 and rose to a peak of $0.018 by the following day, before plunging to its current $0.004 mark. 1DOL is down over 43% during the past 24 hours, showcasing the volatility of memecoin trading, according to CoinMarketCap.1DOL/SOL, all-time chart. Source: CoinMarketCap

The 1DOL token generated significant interest despite a lack of a website and a banned X account. The profitable trade spurred insider trading and money laundering allegations by crypto enthusiasts on social platforms.

Others pointed to the trading pool’s low liquidity, currently worth $291,000 worth of SOL tokens, which would make it impossible for the trader to cash out all his profits without tanking the price of 1DOL even further.

Related:Bitcoin rally above $67.5K could spark new record highs, says 10x ResearchMemecoin frenzy signals the younger generation’s disillusionment with the fiscal system

Over 99% of the savvy traders’ holdings are in the Solana-based WIF memecoin. The wallet holds over $15.8 million worth of WIF, which was valued at over $42 million at its record high, according to CoinStats data.

At its peak on April 1, the wallet was worth over $172 million. However, it is currently down over $75%, or $47 million, over the past month.Wallet “AcLH.” Source: CoinStats

Last week, another savvy Pepe trader turned $3,000 into $46 million by trading the memecoin. The return of the GameStop saga bolstered the Pepe price, and the trader made an over 15,718x return on their initial investment.

The wild success of memecoins reflects a younger generation that is disillusioned by the current fiscal system, according to Hao Yang, the head of financial products at Bybit exchange, who told Cointelegraph:“The success of memecoins can be seen, like punk rock, as a symptom of disillusioned young investors who have seen the opportunities afforded to their parents disappear."

Magazine:Trader turns $3K into $46M in PEPE, Ethereum gas overhaul, Tornado dev guilty: Hodler’s Digest, May 12-18# Altcoin# DeFi# Trading# Solana# Memecoin# PepeAdd reaction