An anonymous cryptocurrency trader has turned nearly $55,000 into $1 million with the memecoin Kekius Maximus (KEKIUS). This happened as Elon Musk changed his personal X account’s name to Kekius Maximus, pumping the memecoin, benefiting early buyers.
The anonymous trader uses the wallet address 0x33a57f4e88c9ceb0788eb41a407e51533d70cc4d, as spotted by Spot On Chain this Tuesday morning. According to the onchain analyst, the trader ‘0x33A’ bought 8.448 million KEKIUS with 16 ETH, then worth $54,800.
These purchases happened between December 19 and stopped approximately 18 hours before Elon Musk’s activity that would change everything. Notably, Musk changed his personal account name to Kekius Maximum just three hours before Spot On Chain’s post.
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This, now controversial decision, has drawn the market’s attention to KEKIUS, bringing massive returns to early buyers like ‘0x33A’. In particular, KEKIUS surges by 980% with Elon Musk’s trick, rewarding the trader with $950,000 of unrealized profits.
Memecoins and the greater fool theory
On Finbold, we have reported other cases of impressive profits acquired by trading meme coins. An anonymous trader turned $368 into $2 million in three days, for example, while another speculator achieved a remarkable 3,329-fold return.
Yet, meme coins have characteristics that resemble financial bubbles, which traders should be aware of. The “Greater Fool Theory” explains the dynamics seen on these speculative tokens, moved primarily by social hype and buzz without any organic demand.
Traders buy the token with the expectation that a “greater fool” will pay a higher price in the future. Nevertheless, the scheme fades away once there are no “greater fools” to continue fueling the price up, often facing liquidity issues and death spirals.
Moreover, most of the recently launched memecoins are financial schemes known as rug pulls, created to extract retail’s liquidity.
Interestingly, “smart traders” or insiders can take advantage of the “greater fools” by creating and promoting meme coins. They benefit from information asymmetry and the hype of a market that insists on gambling, following influential figures like Musk.
Previously, Binance’s Changpeng Zhao (CZ) has criticized these dynamics, as Finbold reported in late November. According to his post, CZ is “not against memes” but acknowledges that “meme coins are getting ‘a little’ weird now.”
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