In the ever-evolving world of cryptocurrency, the allure of memecoins continues to captivate traders and investors alike. Among these, Solana-based memecoins have emerged as a prominent narrative in the current market rally. However, this popularity has also attracted those looking to exploit the frenzy for personal gain.
Solana-Based Memecoin Rug Pulled by a Young Trader
Recently, a young member of Gen Z made headlines by attempting to rug-pull a Solana-based memecoin during a live stream. This 12-year-old crypto enthusiast, known for his crypto-focused social media presence, has previously shared his trading successes with his audience. On a fateful Monday, he proudly announced earning $2,000 before heading to school.
The very next day, he launched the Gen Z Quant (QUANT) token on Pump.fun, a popular Solana-based launchpad. As the token’s value surged, the young trader expressed his astonishment, only to later sell off his entire holdings of approximately 51 million QUANT tokens. This transaction yielded him 128 Solana (SOL), equivalent to $30,000, resulting in a staggering profit of $29,600 within minutes.
However, the story took an unexpected turn after the live stream ended. The crypto community, seemingly outraged by the rug pull attempt, rallied together to take control of the Solana memecoin. In a remarkable twist of events, the token’s price skyrocketed by over 77,000%, reaching a market capitalization of $82.3 million. This surge occurred in the early hours of Wednesday before the value eventually settled around the $50 million mark.
The Rapid Fall of QUANT
Despite the remarkable rise in the token’s value, the young trader’s scheme did not end there. He went on to create two additional memecoins, LUCY and SORRY, seemingly mocking the crypto community for falling victim to his QUANT ploy. These new tokens were sold for 103 SOL, valued at $24,000 at the time of the report.
The incident also gave birth to several memecoins inspired by the event, some of which revolved around the young trader and his family, whose personal information was unfortunately revealed online.
Amidst this turmoil, a fortunate trader managed to profit significantly from the QUANT token, achieving a remarkable 2,141x return on investment. Lookonchain, an on-chain analytics firm, reported that another investor, who initially spent 2 SOL (worth $462), managed to acquire 18.89 million QUANT tokens.
The Community’s Response and the Memecoin’s Future
In just three hours, the crypto community’s concerted efforts propelled the token to its peak, resulting in nearly $1 million in unrealized profits for some traders. One investor sold 3.71 million QUANT for 116 SOL, worth $27,000, while retaining 15.18 million QUANT, with unrealized profits of $962,000 at the time of reporting.
Despite the initial excitement, the memecoin’s rally has significantly slowed throughout the day, experiencing a 57% drop from its peak. As of this writing, the token trades at $0.035, with a market capitalization of $35.11 million.
Meanwhile, Solana (SOL) itself is trading at $240, reflecting the volatile yet promising nature of the cryptocurrency market.
This incident serves as a reminder of the risks and rewards associated with memecoins, highlighting the importance of vigilance and community involvement in the crypto space.
