Trader makes $23 Million selling Solana Memecoins Heres how
A cryptocurrency trader identified with the username “paulo.sol” recently earned a huge profit from trading Solana-based meme coins such as Dogwifhat (WIF), Joe Boden (BODEN), and Bonk (BONK).
On April 26, a leading blockchain analytics firm, Lookonchain, shared the news on X (formerly known as Twitter) with a breakdown of all the trades since November 2023.
What a legend!😱
paulo.sol has realized profits of $9.51M on $WIF, $7.04M on $boden and $6.28M on $BONK.
1/ Let's dig into his trades to see what he's buying.👇 pic.twitter.com/2axUwHb3el— Lookonchain (@lookonchain) April 26, 2024
It was reported that Paulo Sol has made profits of $9.51 million on WIF, $7.04 million on BODEN, and $6.28 million on BONK, realizing a cumulative profit of over $22.83 million from his memecoin trading strategy.
How crypto trader Paulo Sol made profits
As early as November 11, 2023, the crypto whale Paulo Sol noticed the rise of BONK, recognized the token’s potential, and began accumulating positions. He bought the token at a low price and sold it at highs to make approximately $6.28 million in profits from BONK alone.
The following month, on December 4, 2023, Paulo Sol noticed another flipping opportunity with WIF and invested in the token. He held the token until it became profitable. The savvy Solana trader on March 6 spotted BODEN and bought it.
Paulo Sol did not immediately invest in WIF and boden upon their initial listing, but he kept a close eye on their performance and bought heavily when they first rose sharply, establishing significant positions. Interestingly, BODEN token had an incredible run-up during this time, rising by 830% in six hours and a remarkable 2431% in a day.
The trader realized profits of $9.51 million and $7.04 million from WIF and BODEN, respectively.
As of the time of writing, paulo.sol still holds 1.87 million WIF tokens valued at $5.7 million and 12.87 million BODEN tokens valued at $7.6 million.
Crypto Trader buying more Solana memecoins
Furthermore, Lookonchain noticed that Paulo.sol is adding other memecoins within the Solana ecosystem to his current holdings. Today, the trader spent $1.77 million to buy 4.3 million POPCAT tokens at the market price of $0.42 each. And has spent $5.97 million to buy 101,712 PUPS (PUPS) at $59 since April 11, becoming the largest holder of PUPS on Solana.
The trader also spent $5.97 million earlier this month to purchase 101,712 PUPS, a memecoin on Bitcoin (BTC), for $59 each since April 11. This makes paulo.sol the largest holder of the digital asset PUPS on Solana.
Paulo.sol's success story is proof of strategic trading and predicting trends before they become popular, particularly in light of the growing popularity of memecoins.
On March 13, a trader of solana paid 170.25 million Book of Meme (BOME) for 50 solana (SOL). It was worth $8,500 at the time of the transaction. The next day, the trader sold the assets for $767 SOL, or roughly $130,000. Although the trader lost out on a $1 million profit, he nevertheless made over $100,000 in a single day.
According to CoinMarketCap, the token rate climbed by nearly 600%, from $0.00005 to $0.00671. If the trader had sold the coins at this price, Lookonchain said that it could have made about $950,000.
In a similar manner, if a trader had held onto the uncertain Dogwifhat (WIF) token until the start of the bull run, he might have made over $23 million. Rather, the trader sold tokens valued at $142,000.
Nobody can predict what will be the next big thing in the fast-paced world of cryptocurrency. The volatility and speculative nature of memecoins, however, can also result in significant losses for those who miscalculate their trades or fall victim to market manipulations, so it's extremely important that traders approach cryptocurrency investments cautiously.
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.