TLDR
- A $3K investment grew to $2M after CZ’s social media post about a memecoin.
- The “4” token surged in value following a phishing attack and CZ’s post.
- The trader sold a portion, still holding $1.88M of the “4” memecoin.
- Smart money traders joined the surge, buying $100K worth of the “4” token.
A cryptocurrency trader turned a $3,000 investment into $2 million after a social media post from Binance co-founder Changpeng “CZ” Zhao sent the memecoin “4” soaring in value. The remarkable return was made possible by a surge in interest around the “4” token, which gained significant traction following Zhao’s post about a recent phishing incident on the BNB Chain.
Memecoin Surge Triggered by CZ’s Post
On the day of the BNB Chain phishing attack, Zhao shared a post with his 8.9 million followers on X. The post discussed the hacker’s small profit and how the community reacted by turning the incident into a meme, leading to a surge in purchases of the “4” token. The post contributed to a significant increase in the token’s price, and many traders, including the one who saw a major gain, were quick to capitalize on the event.
According to blockchain data provided by Lookonchain, the trader, identified by the wallet address “0x872,” was one of the earliest buyers of the “4” token. The trader initially spent $3,000 worth of BNB to purchase the tokens. Within hours, the investment grew into $2 million, marking a 650-fold return. Despite this impressive gain, the trader sold only a small portion of their holdings and still holds a significant amount of the token.
Community Reaction Fuels Interest in “4” Token
The “4” token was created after the phishing attack on the BNB Chain, which saw the hacker profit a mere $4,000. However, the community quickly turned the incident into a meme, driving the value of the token higher. The increase in interest, sparked by both the incident and CZ’s post, led to a rise in trading activity. Within a short period, the “4” token gained traction, not just with retail investors but also with notable traders.
Blockchain intelligence platform Nansen reported that the “4” token was one of the most-bought tokens by “smart money” traders on the BNB Chain. These traders collectively purchased nearly $100,000 worth of “4” tokens in just 24 hours. The increase in buying activity further contributed to the surge in value of the token.
Memecoins Continue to Draw Attention in the Crypto Market
While the “4” token’s massive rise is an example of the volatility and speculative nature of memecoins, it is not the first time such tokens have made headlines. Memecoins like “Pepe” have also led to massive gains for early investors
In March, a trader turned a $2,000 investment into as much as $43 million by buying the “Pepe” token, though this gain was later reduced when the token’s value saw a sharp decline.
Despite their lack of intrinsic value or utility, memecoins continue to attract significant attention and generate substantial returns for some traders. Their unpredictable nature, combined with community-driven hype, makes them a popular yet risky asset class in the crypto market.
The Role of Social Media in Crypto Price Movements
The recent spike in the “4” token’s value highlights the powerful role social media plays in driving cryptocurrency prices. Zhao’s post about the phishing attack is a clear example of how influential figures in the industry can impact market sentiment. The tweet from CZ not only drew attention to the incident but also catalyzed a buying frenzy, showing how quickly social media can move markets.
As the “4” token continues to attract attention, traders are closely watching how long this surge can last. Some are cautious about the token’s long-term viability, while others see it as an opportunity to take advantage of the ongoing volatility. Either way, the rapid rise of the “4” token serves as a reminder of how unpredictable and speculative the world of memecoins can be.
