A cryptocurrency trader made a 3,329-fold return in four days while speculating in a Solana (SOL)-based meme coin. The accomplishment happens as these primarily speculative tokens regain market share and demand amid controversies and related discussions.
On October 14, a trader started and ended up selling 5.7 million of the meme coin $GOAT for Solana. This rendered him 5,949 SOL, worth $931,000, when Lookonchain reported the activity from the Solana domain stupidmoney.sol.
Interestingly, the crypto trader had bought 15.15 million $GOAT four days before, spending 5 SOL, worth $727. From the initial purchase and after the partial sales, stupidmoney.sol is left with $1.49 million worth of 9.5 million $GOAT – totaling $2.42 million in both realized and unrealized gains.
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However, stupidmoney.sol would face liquidity issues trying to realize all his profits at once, likely nuking $GOAT’s price. This is because GOAT/SOL pair has a low $2.9 million liquidity, a common issue when trading meme coins.
Crypto traders in a meme coin selling spree
In the past few days, dozens of crypto traders were spotted selling millionaire positions of meme coins, realizing profits. This trend started as the cryptocurrency market added hundreds of billions in capitalization, suddenly turning bullish after sidelined weeks.
Vitalik Buterin, Ethereum’s creator, made over $2 million in gains by selling dozens of meme coins he received for free. As Finbold reported, Buterin will donate all these gains from meme coin sales to charity, urging his benefactors to do the same instead of sending the tokens to his address vitalik.eth.
Besides that, similar stories to this recent trader who turned $727 into $2.42 million in four days have surged. For example, the anonymous trader who made $2 million out of a $368 investment in just three days.
Yet, all the hype and growing ‘Fear Of Missing Out’ (FOMO) raise relevant concerns from experienced market participants. Death spirals, daylight rug pulls, smart contract bugs, phishing attacks, low liquidity, and other known issues can turn the tide.
Meme coins controversy and concerns
On one side, influencers who are highly invested in meme coins continue to promote their tokens to their audience. Traders like Murad believe this crypto bull cycle will be the “Memecoin Supercycle,” in retaliation to the predatory VC dynamics.
In his vision, the meme coin boom is a direct response to a market now dominated by private funding rounds. According to Murad and other meme coin enthusiasts, these dynamics punish retail traders, favoring a small elite of wealth investors.
Nevertheless, the speculation in meme coins resembles the behavior in financial bubbles, explained by “the greater fool theory.”
According to this theory, assets with poor fundamental and inorganic demand can rise for a long time, with people buying in the expectation that a “greater fool” will pay a higher price for an already overbought cryptocurrency.
At one moment, however, there will be no “greater fools” left to buy this narrative and deploy more money. Therefore, the market will experience a selling spree under a low liquidity environment, creating a death spiral to zero.
This is why crypto traders and investors should remain cautious, if deciding to play the meme coin speculation game.
