An unknown crypto trader invested only $3,000 in a new meme coin, Numogram (GNON), which was based in Solana before its price increase.
The potential of memecoin trading has been demonstrated by a shrewd cryptocurrency trader who has profited over $9 million on his initial altcoin investment.
The savvy speculator achieved a 3,000-fold return on his investment in the Numogram (GNON) token, a low-market capitalization memecoin launched on October 17 in Solana.
On October 20, the onchain intelligence agency Lookonchain identified the astute trade in a post on X:
“This guy turned $3K into $9M in just 3 days, a 3,000x return! He spent only $3K to buy 56M $GNON via 3 wallets and sold a small part.”
Memecoins have generated numerous new millionaires as a result of their extreme price volatility despite their lack of intrinsic utility. A savvy Pepe trader capitalized on the frog-themed memecoins price rally in May, transforming $3,000 into $46 million monthly.
A day after Moonshot’s listing, GNON memecoin experienced a 230% increase
The enigmatic memecoin achieved a daily rally of more than 200% despite the absence of any apparent use cases.
On October 19, the GNON token exceeded 233% in value in comparison to the price of Solana. According to GeckoTerminal data, the memecoin rose by more than 10% in the past 24 hours and was trading at $0.1505 as of 11:08 am UTC on October 20.
The token has begun to gain momentum since it was listed on the memecoin trading platform Moonshot on October 19. The platform is gaining popularity among novice retail merchants searching for the next significant meme token.
Nevertheless, the rally in GNON may be brief, as no fundamental development catalysts can sustain its long-term price appreciation. GNON’s rally is solely propelled by social media hype and speculation, as with other prominent memecoins.
Memecoins are “a symptom of a disillusioned generation.”
According to Hao Yang, the director of financial products at Bybit exchange, the recent success of memecoins is a result of disillusioned younger generations, similar to the Punk music genre, which became a popular musical movement after initial criticism.
Yang disclosed to Cointelegraph:
“The success of memecoins can be seen, like punk rock, as a symptom of disillusioned young investors who have seen the opportunities afforded to their parents disappear.”
According to Yang, the fiscal system’s absurdity is illustrated by memecoins that have achieved billion-dollar valuations.
“By printing tokens out of thin air and pumping them to billion-dollar valuations, these creators are showing the absurdity of our current fiat system.”
The Solana memecoin mania has the potential to positively impact the SOL price, with some market traders predicting a rally to $180 due to the ongoing demand for memecoins.