An unnamed cryptocurrency trader recently celebrated a return of 3,000 times the original investment in just three days, turning an initial stake of $3,000 to a whopping $9 million. This trader made the staggering profit through strategic plays on a memecoin – a type of cryptocurrency that gained popularity largely thanks to social media – known as Numogram (GNON). This type of high-yielding, fast-paced trading highlights the dynamic, albeit volatile, world of cryptocurrency investment.
The Numogram coin, based on the Solana network, is considered a low market capitalization memecoin and was first introduced to the market on October 17. Despite its unknown use case, the memecoin has captured the interest of traders for its gigantic leaps in price. On October 19, the GNON token rocketed 233% versus the price of Solana.
Part of the coin’s rise can be attributed to its listing on the popular Moonshot memecoin trading platform on October 19. This platform is gaining traction among novice retail investors looking out for the next high-performing meme token.
However, this type of trading is not without risk. The nature of memecoins, inclusive of GNON, is typically volatile since they primarily rely on social media chatter and speculation, with no notable development catalysts to justify or sustain long-term growth.
The attention memecoins are receiving, particularly from younger investors, is akin to how punk rock music gained popularity amongst the disillusioned youth during its early days, suggests Hao Yang, the head of financial products at Bybit exchange. Yang also points out that the exorbitant evaluations of memecoins, often created from nothing, spotlight the absurdity of current financial systems.
Despite the uncertainty and volatility associated with memecoins, it’s speculated that if the Solana-based memecoin increases in popularity, the Solana price could benefit as well, with predictions for a potential rise of up to $180 as demand for memecoins persist.