A lucky trader who invested $800 in the meme coin Moo Deng is witnessing a dramatic roller coaster in his fortunes. Having watched his investments transform from a remarkable 30.2 million tokens into a jaw-dropping $10 million in September, the anonymous trader’s fortunes seem to be reversing. Despite a backlash in the market and dwindling value of Moo Deng, the Solana trader appears to have stuck to his tokens.
However recent blockchain analysis suggests that despite splitting the stash across four Solana addresses, the trader has stubbornly retained the meme coins. The dip in value, a common occurrence with meme coins, slashed the value of Moo Deng by 65% in just nine days.
Despite the tumultuous ride, the trader’s original investment is still looking fruitful. His purchase of the Moo Deng tokens during its launch multiplied over 433,000 times in value, as of now, according to Solscan. The challenge, however, lies in realizing these paper profits due to the extremely illiquid market for Moo Deng.
A transaction, small or colossal, could led to a nosedive in market prices, yielding only minor gains. In such a risky scenario, the trader would not be able to offload the stash without plummeting Moo Deng’s price by over 50%, according to estimates on the Solana DEX aggregator Jupiter.
Risk and speculation are married to meme coins, as Mark Cuban, the venture capitalist, pointed out recently. The highly volatile nature of these tokens has led to a scenario akin to a game of musical chairs where traders speculate on prices, influenced more by hype and less by fundamental value. Despite the waning enthusiasm, a mimetic version of Moo Deng has been receiving attention on Ethereum, curating yet another chapter to the wild ride of meme coins in the crypto markets.