The cryptocurrency community is buzzing about an investor who played a "cat and mouse" game with a fraudulent memecoin project, then made an unbelievable profit of $988,000.
The Madness of Memecoin
The memecoin project QUANT was created on November 20 on the Solana blockchain network’s Pump.fun platform. According to analytics firm Lookonchain, the project was created by a child while streaming. QUANT was later confirmed to be a “rug pull” project.
In the cryptocurrency industry, a “rug pull” refers to a fraudulent cryptocurrency project. The project’s issuing team intentionally designs it to trick investors into buying tokens, then suddenly sells all the tokens, drains liquidity on the exchange, takes cash, and disappears. “Rug pulls” often flourish when the market is in a strong growth season. Chainalysis estimates that in 2021, when the cryptocurrency market peaked, investors lost about $3 billion due to “rug pull” projects. Recently, these projects have appeared in the form of memecoins.
According to Lookonchain, the memecoin QUANT was created by a 13-year-old boy. The project issued 51 million QUANT tokens and sold them all for 128 Solala (SOL), equivalent to $30,000. After deducting fees, this person made a profit of about $29,600. Not stopping there, the boy continued to create LUCY and SORRY tokens and sold them all, earning 103 SOL, equivalent to $24,000.
Boy creates QUANT token during livestream
The madness of the memecoin market is that despite the scam attempt, the community has "joined hands" to continue investing in this scam token to create liquidity. QUANT price continues to increase even though the token creator has sold all of them.
Earn nearly a million dollars in an unbelievable way
Data from Lookonchain shows that a trader spent 2 SOL ($462) to buy 18.89 million QUANT tokens. After the memecoin's price was pushed up, he sold 3.71 million QUANT for 116 SOL ($27,000). The remaining tokens are worth $962,000.
Lookonchain estimates that, after deducting expenses, this person earned $988,000 with just 2 SOL, within 3 hours of trading a scam memecoin.
Analysts say the memecoin market is in a crazy phase where even a child can easily create a token and "pull the rug" of thousands of people. Even more strangely, many people even become millionaires by playing "cat and mouse" with the project.
Player earns more than 21,000 times profit with only 2 SOL capital
This is not the only case of an investor becoming a millionaire thanks to memecoin. Previously in May, a cryptocurrency player turned his initial $3,000 into $46 million in a month by trading the frog-themed memecoin PEPE. A month before that, the memecoin BOME, initiated by an anonymous person on X, even reached a market capitalization of $1 billion after only 4 days of appearing.
Most recently, the memecoin KAMA, which followed Kamala Harris's name when she was chosen as a candidate for the US presidential election, increased by more than 2,000% in a month.
Memecoins are tokens created as a joke. They often follow events on the internet or a new trend. The special thing about memecoins is that they are often very cheap, but the high supply rate allows users to own a large amount of tokens with just a small amount of money. Memecoins often have a short "lifespan", are quickly inflated, and some projects reach a capitalization of billions of dollars due to the support of many famous people.
In the cryptocurrency market, memecoin is still a controversial topic. Many people think that this is a scam, creating no value. But others think that memecoin is a simple, cheap way for users to easily access cryptocurrencies. People who know nothing about Bitcoin, Ethereum can spend a few dollars to a few dozen dollars to buy memecoin, trade, monitor price movements, and make decisions to close profits. For professional investors, memecoin is also an opportunity to help accounts make hundreds or even thousands of times more profit in a short time, which tokens like Bitcoin cannot do.
Source: https://thanhnien.vn/kiem-duoc-gan-1-trieu-usd-nho-giao-dich-memecoin-theo-cach-dien-ro-185241124135510554.htm
Comment (0)