June 18, 2024
Solana Tokens Investment Turns $2.2K into $2.26M in 8 Hours
Latest Cryptocurrency News

Solana Tokens Investment Turns $2.2K into $2.26M in 8 Hours

In just eight hours, a shrewd trader turned $2,275 worth of Solana tokens into an astonishing profit of $2.26 million. The trader’s wallet, identified as “sundayfunday.sol,” achieved an impressive 993x gain on their 13 Solana (SOL) token investment into the newly launched memecoin 1DOL. This information was reported in 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 and Their Phenomenal Rise

Memecoins like Dogwifhat (WIF) and Pepe (PEPE) have gained significant attention since the Bitcoin halving. Despite lacking underlying utility, memecoins frequently attain multibillion-dollar valuations, generating substantial wealth for some investors.

The trader’s over 900x gain is notable, considering their significant participation in the Book of Memes (BOME) token presale. The trader acquired over $72,000 worth of BOME tokens during the presale, which soared to over $40 million at its peak. Despite selling some holdings, the trader remains the largest BOME holder, as reported by 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.”

Volatility and Challenges in Memecoin Trading

The 1DOL memecoin, launched on May 18, experienced a rapid rise to $0.018 the following day before plummeting to its current value of $0.004, marking a 43% decline in the past 24 hours, according to CoinMarketCap. Concerns have been raised regarding the trading pool’s low liquidity, currently valued at $291,000 in Solana tokens, potentially hindering the trader from liquidating all profits without significantly impacting the price of 1DOL.

1DOL/SOL, all-time chart. Source: CoinMarketCap

Over 99% of the trader’s holdings are in the Solana-based WIF memecoin, amounting to over $15.8 million worth of WIF, previously valued at a staggering $42 million at its peak, according to CoinStats data. Although the wallet’s value peaked at over $172 million on April 1, it has since decreased by over 75%, representing a $47 million decline in the past month.

Last week, another savvy Pepe trader transformed a $3,000 investment into $46 million by trading the memecoin. The resurgence of the GameStop saga contributed to the Pepe price surge, enabling the traders to achieve a remarkable 15,718x return on their initial investment.

Wallet “AcLH.” Source: CoinStats

The Cultural Impact of Memecoins

The remarkable triumph of memecoins mirrors the disenchantment of a younger demographic with the current financial structure, as per Hao Yang, Head of Financial Products at Bybit Exchange.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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