In an astonishing turn of events, a cryptocurrency trader transformed a modest $3,000 investment into approximately $2 million in just a few hours, propelled by a tweet from Binance co-founder Changpeng “CZ” Zhao regarding a new memecoin on the BNB Chain. The trader, recognized by the wallet address “0x872,” made a timely entry into the newly launched “4” ($4) token, according to insights from blockchain analytics firm Lookonchain.
The surge in value represents an impressive 650-fold increase from the initial investment. Despite the remarkable upside, the trader opted to sell only a fraction of their holdings, retaining around $1.88 million in tokens as of recent reports. This strategic move illustrates a combination of profit-taking and the anticipation of further gains.
The memecoin’s origin is notably linked to a noteworthy phishing incident on the BNB Chain, where a hacker netted a mere $4,000 from the exploit. Yet, rather than dampening the community spirit, this event spurred the creation of the “4” token, which gained rapid popularity as a tongue-in-cheek reference to the hacker’s lossy gains.
The trader’s portfolio reflects a strong commitment to the meme project, with a staggering 98% of their assets concentrated in the “4” token, as indicated by statistics from CoinStats.app. In terms of unrealized profit, their investment has garnered over $1.8 million this past week alone, highlighting the volatile yet lucrative nature of memecoins in today’s crypto market.
Further validation of the “4” token came from activity among so-called “smart money” investors, who are tracked for performance success on platforms like Nansen. This memecoin was among the top three purchased assets by these informed traders in the past day, amounting to acquisitions close to $100,000 on the BNB Chain.
The recurring phenomenon of memecoins generating substantial wealth for traders is no stranger to the industry. Notably, in March, another trader managed to turn a $2,000 investment into an astounding $43 million by capitalizing on the popularity of the Pepe ($PEPE) memecoin, although they later faced significant losses during a market downturn. Additionally, there have been cases where minimal investments, such as a mere $27, grew to $52 million, showcasing the unpredictable nature of this asset class.
The memecoin’s meteoric rise was significantly catalyzed by CZ’s energetic endorsement on X (formerly known as Twitter), where he shared his thoughts on the phishing breach and the subsequent community response. He remarked, “Interestingly, after the hacker dumped ALL his tokens for a $4k gain, the community took over and bought the meme coin higher, as a mock to the hacker.” His 8.9 million followers quickly became engaged with the story, illustrating the power of social media in modern crypto culture.
However, the volatility remains a critical point of consideration. Just prior to Zhao’s announcement, another unidentified wallet purchased the memecoin, realizing gains exceeding $1.5 million within hours post-trade. This activity underscores the swift dynamics of trading in the crypto realm.
As the dust settles from the recent phishing attack, it will be essential to monitor how the “4” token and its investors navigate the inherently unpredictable landscape of cryptocurrency, particularly amidst overwhelming market enthusiasm.
