The trader bagged nearly $2 million in profit by investing in the ā4ā memecoin shortly after Zhaoās social media post following the BNB Chain phishing incident.
A lucky cryptocurrency trader turned a $3,000 investment into roughly $2 million within hours after Binance co-founder Changpeng āCZā Zhao shared a post about a BNB Chain memecoin on X.
Blockchain data shows the trader, identified by wallet address ā0x872,ā was one of the earliest buyers of the newly launched ā4ā ($4) token,Ā accordingĀ to blockchain analytics platform Lookonchain. The traderās initial $3,000 worth of BNBĀ $1,161.15grew into $2 million, marking a roughly 650-fold return on investment.
Despite the massive gains, the trader sold only a small portion of their holdings and still holds $1.88 million worth of the tokens.
The ā4ā token was created following a phishing attack on the BNB Chain, where the hacker reportedly made just $4,000 in profit before the community turned the event into a meme.
The trader appears to have sought to capitalize on the social buzz surrounding the memecoin, with their crypto portfolio holding over 98% of their assets in 4.
The traderās portfolio generated over $1.8 million in unrealized profit over the past week, according to data fromĀ CoinStats.
The industryās most successful cryptocurrency traders, by returns, who are tracked as āsmart moneyā traders on Nansenās blockchain intelligence platform, have also bought the memecoin.
The ā4ā memecoin was the third-most-bought token by smart money traders over the past 24 hours on the BNB Chain, with traders acquiring nearly $100,000 worth of the tokens, data fromĀ NansenĀ shows.
Despite their lack of intrinsic utility, memecoins have previously made millionaires from crypto traders.
In March, another trader reportedlyĀ turned a $2,000 investmentĀ into as much as $43 million by buying the frog-themed PepeĀ $0.000009995 memecoin. However, the trader held through Pepeās 74% decline from its all-time high, which saw his unrealized $43 million profit shrink to $10 million when he sold his position.
A separate investorĀ turned $27 into $52 millionĀ in May 2024, according to onchain data.
CZās X post sends ā4ā memecoin parabolic
Interest in the ā4ā token surged after Zhao reposted the BNB Chainās statement on the phishing incident to his 8.9 million X followers.
āInterestingly, 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,ā wrote Zhao in a Wednesday XĀ post.
Another unknown wallet purchased the memecoin minutes before Zhaoās X post. It was up over $1.5 million just hours after the trade, according to a Wednesday X post by blockchain data visualization platform Bubblemaps.
Zhaoās post came shortly after theĀ BNB Chainās officialĀ X account was temporarily hacked on Wednesday, Cointelegraph reported.
The attacker used the opportunity to shareĀ phishing linksĀ and promote the memecoin to the pageās over four million followers
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