Tron founder Justin Sun recently transferred $14.7 million in ETH to an unknown wallet, sparking rumors that he may be preparing to invest in the soon-to-launch Sponge V2 (SPONGEV2) meme coin.
With the original Sponge (SPONGE) soaring over 130% this week, crypto investors are now wondering whether the upgraded version could match (or even exceed) these gains once listed on the public market.
Success of Original SPONGE Tokens Sets Stage for V2 Launch
SPONGE is a meme coin launched in May, featuring branding inspired by the beloved SpongeBob SquarePants character.
The project saw immediate success following SPONGE’s Uniswap listing, with the token’s price rocketing to an all-time high of $0.0023 on May 7.
This surge led to 100x returns for the earliest investors – cementing SPONGE as one of the most exciting tokens in the meme coin niche.
However, like most viral meme coins, SPONGE’s price sank due to profit-taking from investors.
Regardless, the token has maintained a strong community throughout 2023, evidenced by over 24,000 people following the official Sponge token Twitter page.
Now, the SPONGE team is gearing up for the token’s next iteration in the form of Sponge V2.
This new version seeks to use the original SPONGE as a springboard, offering new use cases and staking opportunities for loyal holders and first-time buyers.
A key innovation is the Stake-to-Bridge feature, which allows existing SPONGE holders to lock up their tokens and earn a passive yield in the form of SPONGEV2 tokens.
Over 2.6 million SPONGE tokens have been locked up already – with annual yields set at 615%.
Speculation Mounts That Crypto Billionaire Justin Sun May Get Involved with SPONGEV2
While the SPONGE team gears up for the V2 release, speculation is mounting that billionaire crypto entrepreneur Justin Sun may be looking to get involved.
According to data from PeckShield, Sun recently transferred 6,166 ETH, worth over $14 million, from Binance to an Ethereum wallet address associated with him.
The recipient wallet holds over $270 million in crypto assets – and the transfer has sparked rumors that Sun is preparing to deploy funds to purchase meme coins.
This would align with a tweet Sun posted back in May, where he stated plans to begin “trading meme coins.”
Intriguingly, one of Sun’s wallets, “Justin Sun 4” on Etherscan, already holds over 108 million Sponge V1 tokens worth around $43,900.
As the 14th largest holder of SPONGE in the world, Sun seems invested in the project’s success.
Now, with the upcoming V2 release and Stake-to-Bridge protocol, plus the original SPONGE’s 132% price pump this week, crypto enthusiasts speculate Sun may make a sizable investment to capitalize on the buzz.
Upcoming Sponge V2 Release Presents Second-Chance Opportunity for Meme Coin Investors
The release of Sponge V2 provides a clear second opportunity for investors who missed out on the original token’s exponential rise back in May.
With SPONGE having delivered 100x returns for early buyers, SPONGEV2 brings the chance to capture similar (or higher) gains.
Moreover, the recent explosion of meme coins like Bonk (BONK) and Snek (SNEK) signals that hype and speculative mania in low-cap tokens is growing daily.
BONK gained over 7,700% in the past two months, while SNEK is up 1,050% in the same time frame.
These eye-popping returns highlight why investors like Justin Sun may want to rotate into meme coins to take advantage of the volatility.
However, it’s not just high-net-worth investors that are paying attention to SPONGE – well-known crypto influencers have also taken notice.
For example, YouTuber ClayBro, who has over 116,000 subscribers, recently posted a video expressing excitement about the SPONGEV2 staking opportunities.
With influencers generating hype, plus speculation around Justin Sun’s involvement, retail investors seem keen to buy into Sponge V2 early to replicate the gains seen during the first SPONGE bull run.