- A trader achieved a staggering 993x gain by investing in the newly launched memecoin 1DOL, turning $2,275 into $2.26 million.
- Despite volatility, the trader remains a significant holder in another memecoin, BOME, with holdings worth $10.5 million.
- The rapid gains and ensuing controversies highlight the extreme volatility and speculative nature of memecoin markets.
In a remarkable demonstration of cryptocurrency market volatility and potential, a trader known by the wallet name “sundayfunday.sol” has turned a $2,275 investment in Solana into a staggering $2.26 million in just eight hours. The windfall came from a savvy bet on the newly launched memecoin, 1DOL.
Spectacular Gains from Memecoin Investment
On May 19, blockchain analytics firm Lookonchain reported that the trader purchased 242 million 1DOL tokens for 13 Solana (SOL) tokens. Within eight hours, the value of these tokens skyrocketed, reflecting a gain of more than 993 times the initial investment. This type of return is indicative of the highly speculative nature of memecoins, which, despite lacking intrinsic utility, can achieve multibillion-dollar valuations and create overnight millionaires.
Background and Current Holdings
The trader is also known for significant pre-sale participation in another memecoin, the Book of Memes (BOME). Initially investing over $72,000, the trader saw the value of these holdings peak at over $40 million. Although profits were taken, reducing the holding somewhat, “sundayfunday.sol” remains the largest holder of BOME, with current holdings valued around $10.5 million.
Market Dynamics and Controversies
The launch of 1DOL on May 18 witnessed a peak price of $0.018 per token before a sharp decline to $0.004, illustrating the common volatility associated with memecoins. The 1DOL token generated significant buzz despite having no official website and having its X account banned. Allegations of insider trading and money laundering have surfaced, highlighting the darker aspects of rapid price movements in crypto markets.
Liquidity Concerns and Market Impact
Further complicating the situation is the low liquidity in the trading pool for 1DOL, currently valued at about $291,000. This low liquidity could prevent the trader from cashing out the entirety of their profits without significantly impacting the token’s price, a common issue in thinly traded markets.
