A fortunate cryptocurrency trader transformed a $3,000 investment into approximately $2 million in just hours after Changpeng “CZ” Zhao, co-founder of Binance, shared a post about a BNB Chain memecoin on X.
According to blockchain analytics platform Lookonchain, blockchain data indicates that the trader, identified by the wallet address “0x872,” was among the first buyers of the newly launched “4” ($4) token. The trader’s initial $3,000 in BNB (BNB) skyrocketed to $2 million, reflecting an approximate 650-fold return on investment.
Despite these incredible gains, the trader sold only a fraction of their holdings and maintains $1.88 million worth of the tokens.
The “4” token was created in the aftermath of a phishing attack on the BNB Chain, where the hacker reportedly earned only $4,000 in profits before the community turned the incident into a meme.
The trader appears to have aimed to profit from the social hype surrounding the memecoin, with their crypto portfolio holding over 98% of their assets in 4.
The trader’s portfolio has seen over $1.8 million in unrealized profits over the last week, based on data from CoinStats.
Top cryptocurrency traders, categorized as “smart money” on Nansen’s blockchain intelligence platform, have also invested in the memecoin.
Within the past 24 hours on the BNB Chain, the “4” memecoin was the third-most-purchased token by smart money traders, with nearly $100,000 worth of the tokens acquired, according to data from Nansen .
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Even though memecoins generally lack inherent utility, they have previously made millionaires out of crypto traders.
In March, another trader reportedly transformed a $2,000 investment into up to $43 million by purchasing the frog-themed Pepe (PEPE) memecoin. However, the trader held through Pepe’s 74% decline from its all-time high, which caused their unrealized $43 million profit to drop to $10 million upon selling.
Additionally, another investor turned $27 into $52 million in May 2024, as per on-chain data.
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CZ’s X post sends “4” memecoin parabolic
Interest in the “4” token skyrocketed after Zhao reposted the BNB Chain’s statement regarding the phishing incident to his 8.9 million X followers.
Zhao noted in a Wednesday X post, “Interestingly, after the hacker dumped ALL his tokens for a $4k gain, the community took over and bought the meme coin higher, as a mock to the hacker.”
Minutes before Zhao’s X post, another unidentified wallet purchased the memecoin. It was reported to have gained over $1.5 million just hours after the transaction, according to a Wednesday X post by blockchain data visualization platform Bubblemaps.
Zhao’s post surfaced shortly after the BNB Chain’s official X account was temporarily hacked on Wednesday, as reported by Cointelegraph.
The attacker exploited the opportunity to share phishing links and promote the memecoin to the page’s over four million followers.
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