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Memecoins have turned numerous cryptocurrency investors into millionaires despite their intrinsic lack of utility.
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A savvy trader made an over 2,100-fold return on investment in just three hours despite trading a scam token that turned out to be a rug pull — a scam where developers abandon a project and steal investor funds.
A memecoin trader netted nearly $1 million worth of profit in just three hours from an initial investment of only 2 Solana (SOL) tokens worth around $460, according to a Nov. 20 X post from onchain intelligence firm Lookonchain:
“This guy made $988K with only 2 $SOL($462) in just 3 hours, a 2,141x return! He spent 2 $SOL($462) to buy 18.89M $Quant and sold 3.71M $Quant for 116 $SOL($27K), leaving 15.18M $Quant($962K).”
Savvy memecoin trader, QUANT buy. Source: Lookonchain
The savvy trader was trading the newly-created Gen Z Quant (QUANT) memecoin, a token created through Solana’s memecoin launchpad, Pump.fun, which subsequently turned out to be a fraudulent cryptocurrency.
Despite being known for extreme volatility and a lack of fundamental utility, memecoins like QUANT continue to attract traders seeking quick gains. Instances of traders becoming millionaires through memecoins are not uncommon. In May, a Pepe (PEPE) trader turned $3,000 into $46 million in a month, capitalizing on the frog-themed memecoins price rally.
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Quant memecoin trader makes over 2,100x return on investment despite rug pull
Some traders generate a profit on fraudulent cryptocurrencies, including rug pulls.
In this instance, the QUANT memecoin was created by wallet “Fi2h.” The rug pull was orchestrated by a teenager who live-streamed as he sold all his tokens, Lookonchain wrote in a Nov. 20 X post:
“A kid created a coin $Quant while live-streaming and sold all of it for 128 $SOL($30K), making a profit of $29.6K! The 51M $Quant he sold is now worth $4M! He then created $lucy and $sorry, selling all of them for another profit of 103 $SOL($24K)!”
QUANT creator. Source: Lookonchain
Related: Bitcoin price could fast-track to $100K high in November — Analysts
In response to the live-streamed rug pull, the memecoin community joined hands to continue investing in the token, which rose to a high of over $1 million in market capitalization, GeckoTerminal data shows.
QUANT/USD, market capitalization, all-time chart. Source: GeckoTerminal
The token traded at $0.0005, with a $571,000 market capitalization, as of 10:18 am UTC.
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This article first appeared at Cointelegraph.com News
