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

0


A savvy trader turned $2,275 worth of Solana (SOL) tokens into a profit of $2.26 million in just eight hours.

The memecoin trader’s wallet, known as ‘sundayfunday.sol,’ made an over 993-fold gain on his 13 SOL 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 900-fold gain is no coincidence as the wallet is also the largest pre-sale participant of the Book of Memes (BOME) token. He bought over $72,000 SOL worth of BOME tokens at presale which was worth over $40 million at 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 $0.04 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 coin 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 Solana 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 Research

Memecoin frenzy signals the younger generation’s disillusionment in 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, the wallet was worth over $172 million on April 1, which is currently down over $75%, or $47 million, over the past month.

Wallet ‘AcLH’. Source: Coinstats

Last week, another savvy Pepe (PEPE) trader turned $3,000 into $46 million by trading the memecoin, as Pepe price was bolstered by the return of the GameStop saga. The trader made an over 15,718-fold return on his initial investment.

The wild success of these 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