A clever and experienced cryptocurrency trader has managed to make a staggering profit of over $9 million from his initial investment in an altcoin. This impressive success highlights the potential of trading memecoins.
The trader achieved a remarkable return of 3,000 times his investment by trading the Numogram (GNON) token, which is based on the Solana blockchain. GNON is a memecoin with a relatively low market capitalization and was launched on October 17.
The trade was brought to attention by Lookonchain, an onchain intelligence firm, in a post on October 20. The post included an image showing the GNON trader’s four wallets.
Memecoins, despite lacking any intrinsic utility, have the ability to create millionaires due to their extreme price volatility. In May, for example, a trader who invested $3,000 in the Pepe (PEPE) memecoin managed to turn it into a staggering $46 million in just one month, taking advantage of the price rally of frog-themed memecoins.
In a similar manner, GNON experienced a significant price surge of over 230% in a single day, despite the absence of any clear use cases for the mysterious memecoin. The token’s value against Solana (SOL) rose by over 233% on October 19. As of October 20, it had increased by more than 10% in the past 24 hours and was trading at $0.1505, according to data from GeckoTerminal.
The rally of GNON began after it was listed on the memecoin trading platform Moonshot on October 19. This platform has become increasingly popular among novice retail traders who are eager to find the next big meme token.
However, it is important to note that GNON’s rally may not be sustainable in the long run, as there are no fundamental developments that support its long-term price appreciation. Like other leading memecoins, the surge in GNON’s value is driven primarily by social media hype and speculation.
The recent success of memecoins can be attributed to a generation of disillusioned individuals, similar to how the Punk music genre gained popularity after facing initial criticism. Hao Yang, the head of financial products at Bybit exchange, believes that memecoins reaching billion-dollar valuations highlight the absurdity of the current fiscal system.
It is worth mentioning that the craze surrounding Solana memecoins could have a positive impact on the price of SOL, with some market traders predicting a rally up to $180 due to the continuous demand for memecoins.
Please note that this article does not provide investment advice or recommendations. Investing and trading always carry risks, and readers should conduct their own research before making any decisions.