A skilled trader converted $2,275 worth of Solana tokens into a profit of $2.26 million in just 8 hours.
According to a May 19 post on Lookonchain, the wallet of a memecoin trader known as “sundayfunday.sol” made a profit of more than 993x on its investment of 13 Solana (SOL) tokens for 1DOL of the newly launched memecoin.
“8 hours ago he used 13 $SOL ($2,275) to buy 242M #1DOL, now worth $2.26M!”
Memecoins like Dogwifhat (WIF) and Pepe (PEPE) gained attention following the Bitcoin halving. Despite having no underlying utility, memecoins often reach valuations in the billions of dollars, making millionaires for some investors.
The over 900x profit is no coincidence, as the wallet is also the largest pre-sale participant of the Book of Memes (BOME) token. Traders purchased $72,000 worth of BOME tokens in the pre-sale, with a peak valuation of over $40 million.
Despite profiting from some of his holdings, the trader still remains the largest BOME holder, according to Lookonchain.
“He sold 530 billion $BOME for 38,305 $SOL ($7.66 million) and now holds 894 billion $BOME ($10.5 million) and is still the largest individual holder of $BOME.”
1DOL memecoin was launched on May 18 and rose to a high of $0.018 the next day before plummeting to its current $0.004. According to CoinMarketCap, 1DOL fell more than 43% in the last 24 hours, demonstrating the volatility of memecoin trading.
The 1DOL token has generated significant interest despite the lack of a website and the X account being banned. The lucrative trading sparked insider trading and money laundering allegations from cryptocurrency enthusiasts on the social platform.
Others pointed out that the low liquidity of the trading pool, which currently has SOL tokens worth $291,000, makes it impossible for traders to cash out all their profits without driving the price of 1 DOL higher.
Related: 10x Research says Bitcoin could hit a new all-time high if it rises above $67.5,000.
The Memecoin craze represents the younger generation’s disillusionment with the financial system.
More than 99% of smart traders’ holdings are in the Solana-based WIF memecoin. The wallet holds $15.8 million worth of WIF, making it worth more than $42 million, an all-time high, according to CoinStats data.
At its peak on April 1, the wallet value was over $172 million. But it’s now down 75%, or more than $47 million, over the past month.
Last week, another savvy trader, Pepe, turned $3,000 into $46 million by trading memecoins. The return of the GameStop series sent the price of Pepe higher, with traders earning more than 15,718 times their initial investment.
Hao Yang, head of financial products at Bybit Exchange, told Cointelegraph that Memecoin’s massive success reflects the younger generation becoming disillusioned with the current financial system.
“Memcoin’s success can be seen, like punk rock, as a symptom of young investors becoming disillusioned by seeing the opportunities given to them by their parents disappear.”
magazine: Trader Turns $3,000 Into $46 Million on PEPE, Ethereum Gas Check, Tornado Developer Guilty: Hodler’s Digest, May 12-18