Memecoin Trader Turns $8,500 into $800,000, While Major Memecoins Suffer Sharp Drop
On August 1, blockchain analytics platform Lookonchain identified a trader who purchased over 256 million CTO tokens, a Solana-based memecoin, using just 50 Solana (SOL) tokens. At the time, this investment was worth approximately $8,500. Lookonchain noted that this trader was only the third address to buy the memecoin.
Within an hour of making the purchase, the trader sold 227 million CTO tokens for 4,771 SOL, netting a profit of about $800,000. In addition to this impressive gain, the trader had previously earned $104,000 from a $3,400 investment in another token called PFI.
While some believe this trader is simply skilled at spotting lucrative memecoins, others speculate that they might have insider information, given the timing and scale of their transactions.
Despite these individual successes, the broader memecoin market has seen a downturn. Over the past week, some of the most well-known meme tokens have experienced significant price drops. Dogecoin (DOGE) fell by 10.38%, and Pepe (PEPE) saw a 12.74% decline. Dogwifhat (WIF) recorded the steepest drop among top memecoins, plummeting by 26.79%. Other dog-themed tokens like Floki (FLOKI) and Bonk (BONK) also suffered losses, with declines of 13.53% and 17.63% respectively.
Shiba Inu (SHIB) exhibited some resilience, showing the smallest decrease among the top memecoins with a 6.51% drop over the last week. However, SHIB had already endured a 10% fall in July following a security breach at the India-based crypto exchange WazirX. On July 18, hackers stole cryptocurrencies worth $235 million, including $100 million in Shiba Inu tokens. This incident likely contributed to the token’s price decline.
