Anonymous Dogwifhat (WIF) Trader Bags $1.4M Profit Investing $310 as the Memecoin Surges 50%
In Brief
A WIF holder earned $1.4M riding on the memecoin’s recent price surge, initially investing 5.288 SOL or $310 to buy 2.58 million tokens.
An anonymous holder of meme cryptocurrency Dogwifhat (WIF) earned approximately $1.4 million from the recent increase in its price. According to Lookonchain monitoring, a trader spent 5.288 SOL or $310 to buy 2.58 million WIF in November of last year, shortly after it debuted on the Solana blockchain‘s DeFi markets.
WIF experienced an almost 50% increase over the last 24 hours, leading to the trader’s coins reaching a value of about $1.4 million. Consequently, amounding his profit to x4530. At the time of writing, WIF is trading at $0.5, as per CoinMarketCap data.
Launched last year, Dogwifhat is a memecoin on the Solana blockchain, characterized by a Shiba Inu dog wearing a hat. It is a token inspired by Dogecoin (DOGE) with an emphasis on community engagement through meme contests and charity events, rather than positioning itself as a serious financial investment.
Memecoins Surges and Slumps
Cryptocurrencies linked to memes, particularly those featuring the Shiba Inu dog breed, often experience significant value increases and may even endure. Another notable example — Solana’s memecoin, BONK — experienced an initial surge in price following its launch and a rapid decline afterwards.
Subsequently it was listed on the cryptocurrency exchange Coinbase highlighting the potential for “playful” currencies to attract substantial attention and business opportunities. However, traders admit that achieving substantial profits through memecoin trades is often more reliant on luck than skill.
Last year, a trader experienced significant losses in a WIF transaction, spending 86,738.21 SOL (~$8.6 million) to acquire 15.92 million WIF, but incurring substantial losses primarily due to slippage. The trader executed the trade in a pool characterized by low liquidity, causing the order to be filled at an average rate of around $3 per coin, significantly higher than the prevailing market price of $0.13 at that time.
The volatile nature of meme cryptocurrencies highlights both the potential for substantial gains and the inherent risks associated with trading with these assets.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
