Meme coin trader turns $800 into millions
As meme coins have recently begun showing signs of a potential revival, one trader managed to turn an investment of several hundred USD into millions.
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As meme coins have recently begun showing signs of a potential revival, one trader managed to turn an investment of several hundred USD into millions.
According to blockchain analysis platform Arkham Intelligence, a trader known as Db3P purchased $800 worth of a new meme coin called Moo Deng (MOODENG). Over the course of a few weeks, the coin’s price skyrocketed, pushing the value of the investment to over $10 million by Saturday.
UPDATE: This guy turned $800 into $10 Million & is now down $5 million
undefined Arkham (@ArkhamIntel) September 30, 2024
Trader Db3P bought $800 of MOO DENG in its first week and rode it up to highs of $10.2M on Saturday, when Moo Deng was featured on Saturday Night Live.
He is down $5.0M since then, holding $5.2M of MOO DENG… https://t.co/11aKOP09HY pic.twitter.com/TOd9Wp2Y98
That same day, the coin was featured on the popular US TV show Saturday Night Live. However, since then, the price has crashed significantly, cutting the value of the investment in half. Despite the downturn, Arkham reports that the trader has not sold his Moo Deng coins. Some industry observers speculate that the trader might be an insider involved with the project.
The Moo Deng meme coin was inspired by Thailand's pygmy hippo, whose pictures went viral on social media in September. The token was launched on the Solana (SOL) blockchain using the Pump.fun platform. The identity of the project’s creators remains unknown.
Ummmmm 👀🥺✨#moodeng pic.twitter.com/80bFLPKoo3
undefined Moo Deng (@moodengx) October 1, 2024
According to Coingecko.com data, MOODENG is still up 1127% since September 20th.
Price Chart of MOODENG
Strong fluctuations in the meme coin market are also due to relatively low market capitalization and small trading volume. Under these conditions, large price swings can occur without needing significant sums of money to push the market up or down.
Currently, MOODENG’s market capitalization stands at $197 million, with a 24-hour trading volume of $196 million. In comparison, bitcoin (BTC) has a market capitalization of $1.26 billion, and its 24-hour trading volume on centralized exchanges alone reached nearly $36 billion today.
Meanwhile, earlier in September, pseudonymous blockchain security researcher Roffett.eth warned of numerous honeypots targeting memecoin traders and advised caution.
“A friend told me today that he bought two ‘meme coins’ on Base, but they were transferred away immediately after purchase. He thought his wallet had been hacked, so he created a new wallet and bought them again, but they were transferred away again,” the researcher said.