A savvy cryptocurrency trader has profited over $9 million on his initial altcoin investment, showcasing the potential of memecoin trading.
The savvy trader made a 3,000-fold return on his investment in the Solana-based Numogram (GNON) token, a low-market capitalization memecoin launched on Oct. 17.
The savvy trade was flagged by onchain intelligence firm Lookonchain in an Oct. 20 X post:
“This guy turned $3K into $9M in just 3 days, a 3,000x return! He spent only $3K to buy 56M $GNON via 3 wallets and sold a small part.”
GNON trader, four wallets. Source: Lookonchain
Despite their lack of intrinsic utility, memecoins have created many new millionaires through their extreme price volatility. In May, a savvy Pepe (PEPE) trader turned $3,000 into $46 million in a month, capitalizing on the frog-themed memecoins price rally.
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GNON memecoin rises 230% in a day following Moonshot listing
Despite no clear use cases for the mysterious memecoin, it managed to stage an over 200% daily rally.
The GNON token rose over 233% against the price of Solana (SOL) on Oct. 19. The memecoin is up over 10% in the past 24 hours and traded at $0.1505 as of 11:08 am UTC on Oct. 20, according to GeckoTerminal data.
GNON/SOL, 4-hour chart. Source: GeckoTerminal
The token has started picking up momentum after it was listed on the memecoin trading platform Moonshot on Oct. 19. The platform is becoming increasingly popular among beginner retail traders looking for the next big meme token.
However, GNON’s rally could be short-lived, considering that no fundamental development catalysts can support its long-term price appreciation. As with other leading memecoins, GNON’s rally is driven purely by social media hype and speculation.
Related: Odds of Ethereum price rally to $3K increase, but a few red flags remain
Memecoins “a symptom of a disillusioned generation”
The recent success of memecoins is a function of disillusioned younger generations similar to the Punk music genre, which became a popular musical movement after initial criticism, according to Hao Yang, the head of financial products at Bybit exchange.
Yang told Cointelegraph:
“The success of memecoins can be seen, like punk rock, as a symptom of disillusioned young investors who have seen the opportunities afforded to their parents disappear.”
Moreover, memecoins that reached billion-dollar valuations showcase the absurdity of the fiscal system, added Yang:
“By printing tokens out of thin air and pumping them to billion-dollar valuations, these creators are showing the absurdity of our current fiat system.”
The Solana memecoin craze could positively affect the SOL price, with some market traders predicting a rally up to $180 on the continuous demand for memecoins.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.