solana
  • A trader known as “sundayfunday.sol” turned a 13 SOL token investment into $2.26 million by betting on the 1DOL memecoin, achieving a 993x gain.
  • Despite the incredible profit, the low liquidity of the trading pool and the volatility of memecoins present significant risks, with the trader’s holdings primarily in other volatile assets like WIF and BOME.

In an astonishing turn of events, a trader known by the wallet name “sundayfunday.sol” managed to transform a modest investment of 13 SOL tokens into a staggering $2.26 million by betting on the newly launched memecoin, 1DOL. This incredible 993x gain has captivated the crypto community, highlighting both the potential and pitfalls of memecoin investments.

The Memecoin Phenomenon

Memecoins, such as Dogwifhat (WIF) and Pepe (PEPE), have become sensational hits since the Bitcoin halving, frequently achieving multibillion-dollar valuations despite their lack of inherent utility. These coins have turned some savvy investors into millionaires, as evidenced by the recent 1DOL success story.

The trader behind “sundayfunday.sol” is no stranger to the memecoin scene. They were the largest pre-sale participant of the Book of Memes (BOME) token, purchasing over $72,000 worth of BOME tokens at presale. These tokens peaked in value at over $40 million. Despite taking profits on some holdings, the trader remains the largest BOME holder, currently possessing 894 billion BOME tokens worth approximately $10.5 million.

A Meteoric Rise and Fall

The 1DOL memecoin launched on May 18 and experienced a rapid ascent, reaching a peak price of $0.018 by the following day before plummeting to its current value of $0.004. Within the last 24 hours, 1DOL’s value has decreased by over 43%, according to CoinMarketCap. Despite lacking a website and having a banned X account, 1DOL captured significant interest, fueling speculations about insider trading and money laundering on social media.

Critics also highlighted the low liquidity of the trading pool, currently valued at $291,000 in SOL tokens. This low liquidity suggests that cashing out significant profits could severely impact the price of 1DOL, presenting a major challenge for the trader.

Interestingly, over 99% of “sundayfunday.sol’s” holdings are in the Solana-based WIF memecoin. Their wallet contains over $15.8 million worth of WIF, which was valued at over $42 million at its peak. On April 1, the wallet’s value exceeded $172 million but has since decreased by over 75%, now down $47 million over the past month, based on CoinStats data.

Last week, another memecoin trader turned a $3,000 investment into $46 million by trading the Pepe memecoin, further emphasizing the high-stakes nature of these speculative investments.

The Risks of Memecoin Trading

One of the biggest risks associated with memecoin trading is liquidity, especially for newly created tokens. An asset’s exchange rate can surge in a low liquidity environment, creating an illusion of substantial gains. However, these gains are only realized when converted into stable assets like SOL or stablecoins. The same volatility that drives prices up can just as easily cause them to plummet, erasing unrealized gains.

The story of “sundayfunday.sol” serves as both an inspiration and a cautionary tale for those navigating the unpredictable waters of memecoin trading. While the potential for astronomical returns exists, so does the risk of significant losses, underscoring the importance of a strategic and informed approach to investing in this volatile market.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.