Amid the recent market surge surrounding meme coins, a savvy trader has reportedly raked in a staggering $26 million in profits by strategically investing in tokens within the Solana ecosystem.
According to insights from Lookonchain analysts, the trader, known as Paulo. sol, capitalized on the meteoric rise of Bonk (BONK) on November 11, 2023, initiating a lucrative investment in the asset.
Leveraging swing trading strategies, Paulo. Sol capitalized on price fluctuations, amassing approximately $6.28 million in profits.
Building on this success, the trader shifted focus to Dogwifhat (WIF) on December 4, 2023, and later invested in Jeo Boden (BODEN) in March, coinciding with significant upticks in the valuation of meme coins.
Cumulatively, Paulo. sol pocketed impressive profits of $9.51 million and $7.04 million from trading WIF and BODEN, respectively, at elevated price levels.
Presently, the trader holds positions valued at $7.6 million in BODEN and $5.7 million in WIF.
Buoyed by these substantial gains, Paulo. sol has expanded its portfolio by acquiring 9.3 million in Popcat, valued at $4.9 million, establishing itself as the second-largest holder of the token.
The trader’s astute manoeuvres have garnered praise from crypto analyst Zia ul Haque, who lauded Paulo. sol’s comprehensive analysis and strategic insights, attributing their success to more than mere luck.
However, amidst the euphoria surrounding such gains, crypto experts have issued cautionary warnings regarding investments in meme coins within the Solana ecosystem.
On-chain analyst ZachXBT revealed alarming statistics, indicating that over 40% of projects within the Solana ecosystem ceased development within a month following their presale phase.
A detailed examination of 27 projects that collectively raised over 655,000 SOL during token presales uncovered 12 projects associated with fraudulent activities, citing the inherent risks prevalent in the meme coin space.
