Memecoin Projects Offer High Rewards and Significant Risks

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Memecoin projects have become the Wild West of the crypto space, offering high rewards and significant risks. Over the weekend, blockchain data analysis platform Lookonchain noticed that some crypto whales were making significant memecoin transactions; some recorded gains, while others witnessed losses. This process showcases the allure and volatility of memecoins, where fortunes can be made overnight.

Memecoin Hype Continues

According to Lookonchain, the sundayfunday.sol address purchased the 1DOL memecoin project, turning approximately $2,275 worth of 13 Solana into $2.26 million in just 8 hours. The trader achieved a staggering 993-fold return on this transaction. Lookonchain also noted that Sundayfunday.sol was the largest participant in the BOOK OF MEME (BOME) pre-sale, spending $72,000 worth of 421 SOL to purchase BOME.

Sundayfunday.sol acquired 1.43 billion BOME worth $40 million during the asset’s peak price. Later, they sold 530 billion BOME for 38,305 SOL, roughly $7.66 million, and currently hold 894 billion BOME worth $10.5 million.

What’s Happening in the Memecoin Space?

Additionally, Lookonchain noticed that the address 4pV17t9g4qdH3HWZzq6dZ62785pDYhkKUSPai8FHvQTH, suspected to be crypto market maker Wintermute, spent $337,000 worth of 2,000 SOL to purchase MANEKI on May 18. The same address had previously spent $201,000 worth of 1,300 SOL. Following the transaction, MICHI became a popular memecoin last week.

In contrast, Lookonchain 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 had initially purchased 732,481 WIF for $2.18 million, or $2.98 per token, just three days earlier. The sale at approximately $2.52 per token resulted in a $330,000 loss.

Other memecoin projects like PONKE and 1CAT also recorded significant increases in the last 24 hours. DEX Screener data shows that 1CAT increased by 1,320% and is currently trading at $0.001017. PONKE has risen by approximately 54% since May 18 and is currently trading at $0.3458.

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