Some astute traders (or gamblers) have managed to capitalize on the meteoric rise of Solana (SOL)-based memecoins, realizing astronomical gains in the process. According to data from blockchain tracking firm Lookonchain, one trader purchased a substantial amount of Dogwifhat (WIF) in December 2023 and has since seen a staggering 118,967% return on their investment.
The trader’s strategy involved making a series of well-timed sales as WIF’s value skyrocketed. Initially investing just $5,879 to acquire 6.1 million WIF tokens, the trader gradually sold off 4.7 million tokens for a total of $1.57 million. With 1.4 million WIF still in their possession, currently valued at $5.47 million, the trader’s profit on WIF alone stands at an impressive $7 million – a jaw-dropping 1,197x return.
WIF’s explosive growth has been nothing short of remarkable, with the memecoin surging from $0.069 on January 10th to $3.41 at the time of writing, representing a gain of over 49x.
Source: TradingView
Another trader has also found success with MAGA (TRUMP), a memecoin inspired by former U.S. President Donald Trump, who is currently campaigning for the presidency once more. Lookonchain reports that this trader withdrew 1.16 million USDT from Binance and invested 1.15 million USDT to purchase 118,671 TRUMP tokens at an average price of $9.69 over the past two weeks. With TRUMP currently trading at $13.91, the trader is sitting on an unrealized profit of $540,000.
Perhaps the most impressive feat, however, belongs to a savvy trader who has amassed a combined profit of $41.38 million by trading WIF alongside two other memecoins: Jeo Boden (BODEN), inspired by current U.S. President Joe Biden, and Bonk (BONK). Lookonchain reveals that this “smart money” trader sold all 539,558 WIF tokens for 11,708 SOL ($2 million) at a price of $3.70 on May 28th, realizing profits of $24.1 million on WIF, $11 million on BODEN, and $6.28 million on BONK.
As of the time of writing, BONK is trading at $0.000035385, up 1.9% in the last 24 hours, while BODEN is trading at $0.2794, down 5.9% on the day.
These success stories highlight the potential for significant gains in the volatile world of cryptocurrency trading, particularly when it comes to memecoins built on the Solana blockchain. However, it is crucial to remember that such astronomical returns are not the norm and that investing in memecoins carries a high level of risk. As with any investment, it is essential to conduct thorough research, exercise caution, and never invest more than one can afford to lose.
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