In the cryptocurrency industry, memecoin projects have become known for offering high returns but also come with significant risks. Lookonchain, a blockchain data analysis platform, recently observed substantial trading activities by crypto whales over the weekend. Some traders were able to make impressive profits, while others faced significant losses, highlighting the volatility of memecoins.
Lucrative Trades in Memecoin Market
One of the traders, the address sundayfunday.sol, saw a huge return on investment by participating in the 1DOL memecoin project. By converting approximately $2,275 worth of 13 Solana into $2.26 million in just eight hours, they achieved a remarkable 993-fold return. Additionally, sundayfunday.sol was the top investor in the BOOK OF MEME (BOME) pre-sale, buying $72,000 worth of BOME tokens.
At one point, sundayfunday.sol held 1.43 billion BOME tokens valued at $40 million. They later sold a significant portion, 530 billion BOME, for 38,305 SOL, equivalent to around $7.66 million. Currently, they retain 894 billion BOME valued at $10.5 million.
Understanding Memecoin Volatility
Further analysis by Lookonchain revealed that the address 4pV17t9g4qdH3HWZzq6dZ62785pDYhkKUSPai8FHvQTH, believed to be linked to crypto market maker Wintermute, invested $337,000 worth of 2,000 SOL in the memecoin MANEKI on May 18. The same address had previously put in $201,000 worth of 1,300 SOL. As a result, MICHI gained popularity as a memecoin last week.
However, not all traders saw success. On the same day, a crypto whale sold 732,481 dogwifhat (WIF) tokens for $1.85 million, resulting in a loss of $330,000. The whale had purchased these tokens for $2.18 million just three days earlier at a higher price per token, selling them at $2.52 per token, leading to a significant loss.
Important Points for Investors
- Recognize the volatility and risks associated with memecoins.
- Significant gains and losses can happen quickly.
- Large transactions by whales can signal upcoming trends.
- Conduct thorough research and exercise caution before investing.
Other memecoin projects like PONKE and 1CAT have also experienced notable growth recently. Data from DEX Screener shows that 1CAT has surged by 1,320%, now trading at $0.001017. PONKE has risen by about 54% since May 18 and is currently valued at $0.3458.
The initial post can be found on BH NEWS: Crypto Whales Make Bold Memecoin Moves
