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

A savvy trader transformed $2,275 worth of Solana (SOL) tokens into a colossal profit of $2.26 million within a mere eight hours.

The memecoin trader's wallet, known as 'sundayfunday.sol,' reaped a staggering 993-fold return on his 13 SOL investment in the newly launched memecoin 1DOL, as reported by Lookonchain on May 19:

"Eight hours ago, he invested 13 $SOL ($2,275) to acquire 242M #1DOL, which is currently valued at $2.26M!"

Memecoins such as Dogwifhat (WIF) and Pepe (PEPE) have surged in popularity since the Bitcoin halving. Despite lacking inherent utility, these memecoins often soar to multibillion-dollar valuations, minting millionaires for some investors.

The trader's remarkable 900-fold gain is hardly a fluke, as his wallet was also the largest pre-sale participant of the Book of Memes (BOME) token. He invested over $72,000 SOL in BOME tokens during the presale, which peaked at a value exceeding $40 million.

Despite liquidating portions 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), maintaining his status as the largest individual holder of $BOME."

The 1DOL memecoin debuted on May 18 and soared to a peak of $0.018 the following day, before plummeting to its current value of $0.04. 1DOL has shed over 43% in the past 24 hours, highlighting the volatility of memecoin trading, as reported by CoinMarketCap.

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

Despite the absence of a website and a banned Twitter account, the 1DOL coin has garnered significant attention. The lucrative trade has sparked allegations of insider trading and money laundering among crypto enthusiasts on social media platforms.

Others have raised concerns about the trading pool's meager liquidity, currently valued at $291,000 worth of Solana tokens, which would make it challenging for the trader to cash out all his profits without further tanking the price of 1DOL.

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 trader's holdings are concentrated in the Solana-based WIF memecoin. The wallet holds over $15.8 million worth of WIF, which peaked at a value of over $42 million, according to CoinStats data.

At its zenith on April 1, the wallet's value surpassed $172 million, but it has since plummeted over $75%, or $47 million, in the past month.

Wallet ‘AcLH’. Source: Coinstats

Last week, another savvy Pepe (PEPE) trader transformed $3,000 into a staggering $46 million by trading the memecoin, as Pepe's price was buoyed by the resurgence of the GameStop saga. The trader realized an astounding 15,718-fold return on his initial investment.

The extraordinary success of these memecoins mirrors a younger generation's disillusionment with the current fiscal system, according to Hao Yang, head of financial products at Bybit exchange, who remarked to Cointelegraph:

"The rise of memecoins can be viewed, akin to punk rock, as a manifestation of disillusioned young investors who have witnessed the dwindling opportunities available to their parents."

Magazine: Trader turns $3K into $46M in PEPE, Ethereum gas overhaul, Tornado dev guilty: Hodler’s Digest, May 12-18