Cryptocurrencies, especially memecoins, are very volatile assets known to rise and fall sharply and within a very short time. In some cases, smart traders profit from these movements by investing when the prices are low and cashing out when there is a profitable upsurge. Other “not-so-smart” traders are sucked into significant losses and sometimes end up losing all their investments.

However, it is not always the case of smartness, sometimes, traders invest early in a coin based on an insider hint, that is, an update from the developers or owners of a coin. They get notified on when to buy and when to sell their holding. This has been assumed in the case of this trader who quickly turned $727 into $2.4 million by trading the GOATS memecoin. Let’s see how this happened.

Trader Turned Millionaire by Investing in GOAT Coin

Lookonchain, a popular on-chain tracking platform, reported the development on X (formerly Twiter). According to the post, the trader made a massive 3,329x return by investing a modest $727 in acquiring the GOAT memecoin.

The trader first spent 5 Solana (SOL) coins worth $727, to buy 15.15M GOAT coins about four days ago from the time of writing. Following the purchase, the value of the coin quickly skyrocketed which led to instant cash out by the trader.

Per Lookonchain, the trader sold off a portion of his holdings about eight hours ago, precisely 5.7 million GOAT for 5,949 SOL (valued at $931,000).

Source: Lookonchain/X

Notably, the trader still holds a staggering 9.45M GOAT, worth $1.49 million bringing his total profits to about $2.42 million.

Community Reaction, Insider Trading?

The crypto community on X reacted to the transaction update with a made-up mind of insider trading. Several users commented, pointing fingers at the developers of the coin.

One user, CryptoLord NE, insinuated that the developers used multiple wallets to buy and shill the coin. He said, “Dev buys with one wallet and pumps with the other.”

Another user, Mr Vandelay Art, stressed that the developers bought the coin five minutes after the launch and then dumped it on the market. But are these accusations the truth? This is why the GOAT coins pumped quickly.

Reasons Why the GOAT Coin Skyrocketed

The GOAT memecoin, recently launched on the Solana blockchain, quickly gained traction following a rumor launched by “Truth Terminal”, an Andreesen Horrowitz-funded artificial intelligence bot.

However, the bot creator, Andy Ayrey, clarified things in an X post, stating that the bot didn’t launch the coin, rather it helped promote it.

He emphasized that someone else created the coin, and tagged the bot which then endorsed it. Ayrey added that Truth Terminal isn’t a crypto project, but “a study in memetic contagion and the tail risks of unsupervised infinite idea generation in the age of LLMs”

Following the endorsement, the value of the coin skyrocketed with its market valuation reaching close to $150 million as of October 14.

Source: Birdeye

However, at the time of writing, its market cap dropped to $133 million. According to data from Birdeye, GOAT still has 12,353 holders with moderately high community sentiment.

Thus, this trader who flipped $727 into $2.4 million in four days could be one of the lucky investors who quickly bought into the project following the hype around its launch. It is known that memecoins often benefit from these hypes and their value tends to jump or drop following the sentiment surrounding it.

At the time of writing, GOAT was changing hands at $0.1295, representing a 16.68% increase in the last 24 hours.

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