An anonymous crypto trader has recently made headlines after turning a $68,700 investment into a staggering $9.4 million by backing a token that emerged from a social media hack. This incredible feat showcases the wild world of memecoin speculation, where investors can see exponential gains but also face significant risks.
The trader purchased 63.07 million units of a Binance Smart Chain token named “4” on October 1 for just 68 BNB. Within a mere two days, the value of this investment skyrocketed by over 135 times, resulting in an unrealized gain of approximately $9.3 million. The rapid rise in value of this memecoin once again highlights the volatile nature of these tokens, which often lack underlying utility and are heavily influenced by social sentiment.
The origin story of the “4” memecoin is quite unusual. On October 1, hackers compromised the official BNB Chain X account, using it to distribute phishing links. This breach led to losses totaling $8,000 across networks, with one user losing up to $6,500. Yu Xiang, the founder of blockchain security firm Slowmist, linked the attack to the notorious Inferno Drainer group, known for offering tools that enable phishing scams.
During the attack, the hackers also launched the “4” memecoin, selling their initial holdings for $4,000. They manipulated the market to drive up prices and ultimately made an exit with $22,000 before abandoning the project. However, instead of fizzling out, the token was taken over by crypto traders who consolidated liquidity, turning it into a community-driven asset.
This unexpected turn of events led to a surge in the token’s price. Market data from Dexscreener shows that “4” has experienced nearly a 200% increase in the last 24 hours, trading at $0.1775 with a market capitalization exceeding $150 million at the time of writing. This revitalized token serves as a reminder of the unpredictable nature of the crypto market and the potential for significant gains for those willing to take the risk.
In conclusion, the story of the “4” memecoin exemplifies the speculative and often unpredictable world of memecoins in the crypto space. While these tokens can offer massive returns, they also come with substantial risks due to their reliance on social sentiment and lack of underlying value. Investors should approach such investments with caution and be prepared for the extreme volatility that accompanies memecoin trading.