A fortunate cryptocurrency trader transformed a $3,000 investment into approximately $2 million in just hours after Binance co-founder Changpeng “CZ” Zhao posted about a BNB Chain memecoin on X.
Blockchain data indicates that the trader, known by wallet address “0x872,” was among the first buyers of the recently launched “4” ($4) token, according to blockchain analytics platform Lookonchain. The trader’s initial $3,000 worth of BNB (BNB) skyrocketed to $2 million, resulting in an impressive roughly 650-fold return on investment.
Even with such remarkable gains, the trader sold only a fraction of their assets and still retains $1.88 million worth of the tokens.
The “4” token emerged after a phishing attack on the BNB Chain, where the hacker allegedly profited only $4,000 before the community turned the incident into a meme.
The trader seems to have aimed to take advantage of the social excitement surrounding the memecoin, holding over 98% of their crypto portfolio in 4.
The trader’s portfolio generated more than $1.8 million in unrealized profits over the past week, as per data from CoinStats.
The cryptocurrency sector’s most successful traders, tracked as “smart money” by Nansen’s blockchain intelligence platform, have also invested in the memecoin.
The “4” memecoin ranks as the third-most-purchased token by smart money traders in the past 24 hours on the BNB Chain, with almost $100,000 worth of tokens acquired, according to data from Nansen.
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Despite their lack of intrinsic value, memecoins have previously created millionaires within the crypto trading community.
In March, another trader reportedly transformed a $2,000 investment into as much as $43 million by purchasing the frog-themed Pepe (PEPE) memecoin. However, the trader endured a 74% decline from Pepe’s all-time high, with their unrealized $43 million profit dwindling to $10 million upon selling.
An additional investor turned $27 into $52 million in May 2024, based on onchain data.
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CZ’s X post propels “4” memecoin to new heights
Interest in the “4” token surged after Zhao shared the BNB Chain’s statement regarding the phishing incident to his 8.9 million followers on X.
“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,” Zhao noted in a Wednesday X post.
Another unidentified wallet acquired the memecoin minutes before Zhao’s post, reportedly gaining over $1.5 million just hours afterward, as stated in a Wednesday X post by blockchain data visualization platform Bubblemaps.
Zhao’s post followed shortly after the BNB Chain’s official X account was temporarily compromised on Wednesday, as reported by Cointelegraph.
The assailant exploited this opportunity to post phishing links and promote the memecoin to the page’s over four million followers.
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