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Do traders still make millions from meme coins?
Meme coins still bring profit, but not for everyone. Investors told crypto.news how much they managed to gain from the meme coin’s hype.
Meme coins recorded an astonishing return of 1,313% on average in the first quarter. And this sector does not even think about stopping its growth, bringing traders millions of dollars in profits.
Source: CoinGecko
Huge positive price waves in a matter of days or weeks are natural. But what is all this about?
What are meme coins?
Meme coins are a type of cryptocurrency whose popularity is directly related to internet memes and viral marketing on social media. Typically, they are initially created as a joke, without any practical function.
The first and most famous token was Dogecoin (DOGE), released in 2013 based on the popular Shiba Inu dog meme. DOGE was initially designed to be a parody of Bitcoin (Bitcoin). However, over time, this asset gained a capitalization of billions of dollars.
The main difference between meme coins and traditional cryptocurrencies like Ethereum (ETH) or Bitcoin is the lack of intrinsic value and issuance restrictions. Their cost depends entirely on demand amid the Internet boom, and because of this, meme coins are characterized by greater volatility.
However, recently there has been a tendency to give greater practical meaning to meme coins. For example, the developers of Shiba Inu (SHIB) and FLOKI are creating their own metaverses, NFT platforms and educational ecosystems based on these assets.
Million dollar profit – this year’s trend
The number of issued meme tokens is growing with enviable regularity and traders manage to make fortunes on them. However, this success is often short-term and random. In the long term, as the Internet’s popularity declines, the value of most meme coins tends toward zero.
Presumably, those who earn millions of dollars in meme tokens have inside information. Otherwise, how would these traders and investors know that the prices of certain meme coins would show rapid growth? Crypto.news editors spoke with traders who could make profits on condition of anonymity.
Investments in frogs
Pepe Members (PEPE) the crypto community is celebrating the sapo token’s new all-time high. In the midst of this, a user said that he transformed just US$90 into US$1.4 million thanks to PEPE.
In mid-April 2023, a trader purchased almost 6.5 trillion PEPE on the Uniswap crypto exchange just for fun. As the initial investment amount was small, the trader did not sell the tokens and decided to observe what would happen to them.
This decision turned out to be the right one — in May 2024, 6.5 billion PEPE turned the anonymous trader into a millionaire in dollars. However, a user with the nickname Mina said that he does not intend to sell PEPE and now believes that one day the price of the frog coin will surpass $1.
“Sometimes I want to sell my PEPE, but I keep it as a reminder not to be in a rush. The meme coin market has not yet finished conquering the peaks and it is likely that my PEPE will make me a billionaire within a year.”
Mina, anonymous trader
Strong belief in dogs and love of hats
A trader from the meme coin Telegram community shared an impressive story of gains on Dogwifhat (WIF) coin. However, this case is different from the inspiring stories of traders whose coins grow 1,000 times in an hour.
The anonymous trader used a different strategy – HODL. He purchased WIF in December 2023 and analyzed the overall activity on the Solana network and the growth prospects of the crypto market.
After weighing all the risks, the trader purchased approximately $500 worth of tokens, expecting further growth. As a result, he earned about $15,000 simply by holding assets on his balance sheet.
“I have heard stories of traders who made billions of dollars in profits starting with just $100. However, as an active participant in the crypto community, I consider these stories to be an exception to the rule. The meme coin market is still very opaque and confusing, so inspiring stories about traders are probably simply inside information.”
Member of the meme coin community
More conservatism
Another member of the crypto community with the nickname Andilet urged caution when investing in meme coins and shared his strategy for diversifying assets. He advised dividing the crypto portfolio by risk level, with 10% of the portfolio made up of volatile and high-risk coins, including meme coins.
Despite the high risk, allocating part of the portfolio to meme coins seemed appropriate since meme coins are more likely to generate significant profits.
“In general, it is difficult to predict in the long term how the meme coin market will behave – because in memes everything largely depends on hype, the level of which is also difficult to predict.”
Andilet, SHIB investor
He invested in Shiba Inu in the summer of 2023, spending around $5,000 to buy coins priced at $0.0000077. Now, with a SHIB rate of $0.000025, your assets are worth about $50,000.
“I believe that in the case of meme coins, an individual approach to each project is important. You can guess the trend in the short and medium term by closely studying the project.”
Andilet, SHIB investor
In short: to invest or not to invest?
Investing in meme cryptocurrencies is a considerable risk. This can bring a solid profit due to speculation, a successful exit moment and a complete loss of capital. The main thing is to monitor social networks, read the news, be able to search for information and, the first time a media personality mentions some meme coin, try to get it.