The investor achieved a staggering 993x increase on their initial investment, prompting accusations of insider trading.
In just eight hours, a savvy trader transformed an initial investment of $2,275 in Solana tokens into a staggering profit of $2.26 million. Using the wallet name “sundayfunday.sol,” the trader achieved an astonishing 993x gain on their 13 Solana (SOL) tokens, which were valued at $178 each, by investing in the newly-launched memecoin 1DOL. This remarkable feat was reported in a May 19 update by Lookonchain.
Since the Bitcoin halving, memecoins such as Dogwifhat (WIF) and Pepe (PEPE) have surged in popularity, despite lacking any intrinsic utility. Their valuations often skyrocket, creating millionaires among investors.
This remarkable 900x increase isn’t a fluke; the leading wallet is also the primary participant in the pre-sale of Book of Memes (BOME) tokens. Initially investing $72,000 in BOME tokens during the presale, this trader’s holdings peaked at over $40 million.
Even though they’ve sold portions of their holdings to secure profits, this trader maintains the position of the largest BOME holder.
The memecoin 1DOL debuted on May 18 and swiftly surged to a high of $0.018 within a day, only to subsequently plummet to its present value of $0.004. In the past 24 hours alone, 1DOL has experienced a decline exceeding 43%, highlighting the inherent volatility in memecoin trading, as reported by CoinMarketCap.
The 1DOL token gained considerable attention despite not having a website and being associated with a banned X account. The profitable transactions led to accusations of insider trading and money laundering by cryptocurrency enthusiasts on social media platforms.
Some individuals highlighted the trading pool’s limited liquidity, valued at $291,000 in SOL tokens. This would present a challenge for the trader to liquidate all their profits without significantly driving down the price of 1DOL.
The memecoin frenzy reflects young people’s disillusionment with the financial system
More than 99% of adept traders have allocated their assets into the Solana-based WIF memecoin. The wallet holds a total of over $15.8 million worth of WIF, which reached a peak valuation of over $42 million according to CoinStats data.
At its highest point on April 1, the wallet’s value surged to over $172 million. However, over the past month, it has experienced a significant downturn of over 75%, equating to a loss of $47 million.
The previous week saw a remarkable feat in the world of cryptocurrency trading: a savvy individual turned a modest $3,000 investment into a staggering $46 million through trading the memecoin. This astronomical return was fueled by the resurgence of interest in GameStop, which in turn propelled the value of Pepe. The trader achieved an extraordinary 15,718x increase on their initial investment.
Hao Yang, the head of financial products at Bybit exchange, suggests that the soaring popularity of memecoins mirrors a growing disillusionment among younger generations with the current financial system.
Read More: Currently, Bitcoin would have to reach $93,000 in order to surpass the value of silver
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