Trader Became Paper Millionaire With This Meme Coin

TL;DR

• Due to their volatile nature, meme coins have created another success story, turning a relatively small investment into a massive fortune.
• That precise nature, however, has also led to numerous crashes in the past, so traders should be wary when dealing with them and not follow and invest blindly.

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This particular example of substantial ROI comes from the meme coin TROLL. Currently, the asset has a market capitalization of just over $100 million, placing it within the top 500 alts by that metric.

Based on the Solana network, it’s a meme coin inspired by the online trolling culture, designed for “entertainment and community engagement with no intrinsic value.”

Although the description acknowledges that it lacks intrinsic value, this hasn’t stopped certain traders from investing millions in it, transforming it into a highly popular lower-cap meme token.

The anonymous trader spotted by Lookonchain spent just under $23,000 to accumulate 27.86 million coins over three months ago. They disposed of a small portion almost immediately, perhaps to cover a large part of their initial investment amid the first price pump, but now hold over 26.5 million tokens.

Given TROLL’s massive surge in the past few months, as the asset is up by 570% since July 5 alone, the trader’s fortune has skyrocketed to be worth almost $2.5 million at the time of Lookonchain’s post.

Such impressive returns are not isolated events in the cryptocurrency industry, especially in the meme coin space. You can find another similar example here.

However, their notorious volatility has also resulted in painful price crashes that have wiped out millions in unrealized profit, such as this trader who went from a paper profit of $5.2 million to a $335,000 loss in months.

Meme coins are inherently volatile as they tend to react more dramatically to bull runs and bear markets. Traders should not just FOMO in based on a few success stories. They need to do their own research and allocate funds to memes they are prepared to lose.