The allure of memecoins, fueled by the meteoric rise of Dogecoin (DOGE) and Shiba Inu (SHIB), continues to grip the crypto market.
Meme coins are often born from online communities and viral trends, promising the opportunity for extraordinary returns. For a fortunate trader, one recent trade with a Solana-based meme coin proved how explosive these investments can be.
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On-chain data shared by Lookonchain (@lookonchain) on X shows the remarkable feat, where a savvy investor transformed a mere 3 SOL ($300) into over $170,000 with a single trade.
This individual, who is still anonymous, seized the moment by purchasing 61.8 million MYRA tokens within five seconds of its launch. This swift action proved pivotal, as the value of MYRA soared throughout the day.
Before the end of the day, the mysterious trader cashed out 33 million MYRA, trading it for 603 SOL (approximately $60,300). Remarkably, the trader’s wallet still holds over 28.74 million MYRA, currently valued at 1,100 SOL (approximately $110,000).
In just 1 day, this trader turned 3 $SOL into 1,703 $SOL ($170K), a gain of 567x!😱
He spent 3 $SOL to buy 61.8M $MYRA within 5 seconds of opening trading, then sold 33M $MYRA for 603 $SOL.
He currently holds 28.74M $MYRA(worth 1,100 $SOL).
The profit is ~1,700 $SOL ($170K)! pic.twitter.com/guTUXtnd97
— Lookonchain (@lookonchain) January 14, 2024
Potential Insider Trading?
Such astronomical gains naturally spark debate within the cryptocurrency community. The investor has been accused of insider trading, just like another trader who turned 30 SOL to $5.7 million in December.
Many traders feel these opportunities are not accessible to average investors, and the Swift nature of the purchase has caused more suspicion in the crypto community.
Some community members also believe that the development team could be behind the initial surge, granting themselves an early advantage. They believe the devs pump the price of the meme coins and after users buy in hoping for a continued surge, they dump their large holdings on the market, causing the price to tumble.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Top Analyst Sets $163 Target for Solana (SOL), Citing Bull Flag Formation
However, sophisticated trading bots, programmed to scan for and capitalize on newly launched memecoins, cannot be ruled out. There is no verified evidence of insider trading currently.
These occurrences have become more frequent lately, as another trader recently turned 3 SOL to $250,000. Sadly, there is no way to predict what meme coins can surge. It is important to remember that while everyday investors can stumble upon meme coin fortunes, such occurrences are rare and unpredictable.
Top crypto figures also seem to be against these meme coins, as a top proponent recently accused some Solana-based meme coins of being rug pulls. The meme coins, which have surged astronomically, began shedding all those gains, leaving investors with massive losses. For the average investor, skepticism is essential when investing in meme coins.
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