beincrypto.com
Meme coins have become the Wild West of the crypto space, offering both high rewards and significant risks. Over the weekend, on-chain tracking platform Lookonchain noticed that some crypto whales had engaged in substantial meme coin transactions, with some recording gains while others witnessed losses.
This activity showcases the allure and volatility of meme coins, where fortunes can be made overnight.
Wild Weekend for Meme Coins
According to Lookonchain, the address sundayfunday.sol turned 13 Solana (SOL), worth about $2,275, into $2.26 million in just 8 hours by buying the 1DOL meme coin. From this transaction, they earned a staggering 993x return.
Lookonchain further noted that sundayfunday.sol is the largest participant in the BOOK OF MEME (BOME) presale. They had spent 421 SOL (about $72,000) to buy BOME.
Sundayfunday.sol received 1.43 billion of BOME, valued at $40 million during the asset’s peak price. They then sold 530 billion BOME for 38,305 SOL, roughly $7.66 million, and currently hold 894 billion BOME, valued at $10.5 million.
Read more: Book of Meme (BOME) Price Prediction 2024/2025/2030
Additionally, Lookonchain noticed that the address “4pV17t9g4qdH3HWZzq6dZ62785pDYhkKUSPai8FHvQTH,” suspected of being the crypto market maker Wintermute, spent 2,000 SOL ($337,000) to buy MANEKI at $0.0098 on May 18. The same address previously spent 1,300 SOL ($201,000) to buy MICHI nine days ago. Following the transaction, MICHI became a popular meme coin over the past week.
In contrast, Lookonchain also reported significant losses among other crypto whales. On May 18, a crypto whale sold 732,481 dogwifhat (WIF), worth $1.85 million, at a loss. This whale initially purchased 732,481 WIF for $2.18 million at $2.98 per coin just three days earlier. The sale at around $2.52 per coin resulted in a loss of $330,000.
Other meme coins like PONKE and 1CAT also marked significant gains over the last 24 hours. DEX Screener data shows 1CAT surged by 1,320% and is now trading at $0.001017. PONKE rose around 54% since May 18 and is currently trading at $0.3458.
The case of these meme coin whales illustrates the thrilling yet risky aspects of meme coin trading. Ken Timsit, managing director at layer-1 blockchain Cronos, emphasized the challenges of trading meme coins. He noted that there is no sure formula for a regular person to trade meme coins.
“Meme coin investors spend a lot of time on X (Twitter), Farcaster, and Discord to get a feel for the community sentiment, and they are able to act on that sentiment within hours. While the dream of overnight riches can be compelling for many people, it is important that users and developers continue to pay attention to other blockchain use cases such as DeFi, Web3 gaming, decentralized social platforms, and decentralized infrastructure,” he told BeInCrypto.
Read more: What Are Meme Coins?
Indeed, this weekend’s events and Timsit’s insight highlight the need for meme coin traders and investors to approach these assets with caution and strategic insight.