A single trader on the Solana blockchain struck gold, turning a $35,000 investment into an unrealized profit exceeding $10 million in less than two hours. This incredible feat was achieved by purchasing a newly launched meme coin called “cat in a dogs world” (MEW).
The daring gamble involved the trader, identified by his Solana account address ‘5We8d…qP5GY’, acquiring 4.41 billion MEW tokens. The initial investment of 178.2 SOL (worth approximately $35,000) was made on March 26 at 5:23 am (UTC). News of this astonishing move was reported in a tweet by Lookonchain.
Crazy! 😱
This guy turned $35K into $8.9M in less than 2 hours!
He spent 178.2 $SOL($35K) to buy 4.41B $MEW ~2 hours ago.
And the 4.41B $MEW is worth $8.9M now, with an unrealized profit of ~$8.89M and a gain of 255x!https://t.co/5X0iok8J9b pic.twitter.com/vdpwKBlOUh
— Lookonchain (@lookonchain) March 26, 2024
Price Surge and Liquidity Concerns
The trader’s bold bet paid off handsomely as the price of MEW skyrocketed and the trader “made an unrealized profit of ~$8.89M and a gain of 255x!” according to Lookonchain. However, a major challenge arises, and its liquidity.
With a 24-hour trading volume of over 200 million dollars, attempting to sell such a large position could prove problematic. Any significant sell-off can crash the price of MEW, potentially wiping out the trader’s extraordinary gains.
According to data from CoinMarketCap, MEW currently trades at $0.002414, representing a substantial increase from the purchase price of $0.002023. This surge has pushed the market capitalization of MEW to over $203,782,622
Background of MEW
Very little is currently known about the “cat in a dogs world” (MEW) project. Meme coins often emerge with minimal information about their creators or underlying purpose.
It’s essential to be aware that these projects can be highly speculative and may lack long-term viability. Due diligence and extreme caution are advised before investing in any new cryptocurrency, especially ones with limited public information.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Cautionary Tale for Meme Coin Investors
This Solana trader’s story underscores both the potential rewards and the inherent risks associated with meme coins. Extreme volatility and limited liquidity are hallmarks of these assets, particularly in their early stages.
Prices can swing wildly in either direction, offering vast profit opportunities but also the potential for devastating losses. The Solana ecosystem, while still in development, presents a unique landscape for traders.
Meanwhile, Times Tabloid recently reported an analyst’s prediction of Solana’s price soaring to $750.
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