A cryptocurrency trader has succeeded in making a significant amount of money by launching hundreds of meme coins on popular token launchpad PumpFun. This lucky trader, whose Solana address is MNhBbrscBPmeid54buiqSgyWa4D8PY6uKHoK2wJsTJN, has generated over $800,000 by launching at least 17,000 meme coins since late October, according to data from Dune.
Furthermore, the GMGN.ai onchain data site shows that the trader made profits from 79% of their meme coins.
Such a trading activity would have been controversial just a year ago as most crypto users were not open to the idea of token creators launching tokens but spending no time developing them. However, many are now used to such cases following the launch of PumpFun on Solana.
Understanding PumpFun
Simply put, PumpFun is a Solana-based platform that allows crypto users to create tokens at no cost and without providing initial liquidity. After deploying a token, the developer behind it can buy a portion of its supply and sell it whenever they wish.
If the token achieves a $100,000 market capitalization, it ‘graduates,’ meaning PumpFun transfers it to decentralized exchanges to make it accessible to a wider audience.
It is worth mentioning that when your token graduates, you will receive 0.5 SOL or about $110 based on today’s price.
How the Lucky Trader Made Thousands of Dollars From Launching Meme Coins
Although most of the coins launched by the lucky trader did not graduate, they were still able to generate reasonable returns. One of their few tokens that graduated was ‘COOKER,’ a meme coin created to celebrate a popular crypto influencer going by that name.
When the anonymous trader launched COOKER, they immediately purchased $8,400 worth of the token and dumped it in three transactions within two minutes, profiting about $16,000, according to data from GMGN.
Interestingly, the trader’s Solana wallet history revealed that their average token holding time is three minutes. This strategy caused them to miss out on a possible half-a-million-dollar profit last December when they launched and sold the Rapid Response meme coin for just $24 profit. The trader would have generated massive returns if they held the token for a few days, given that Rapid Response’s market cap hit $4.2 million in three days.
However, it is possible that the meme coin would not have rallied if the trader hadn’t sold their position. That’s because most people do not like to trade meme coins whose creators still own significant portions of the supply.
Besides profiting from trading, the lucky trader earned 75 SOL after their 150 meme coins graduated. Solscan data indicates that PumpFun paid the trader for the first in late November.
Is the Lucky Trader Using a Bot?
Meanwhile, the Director at Coinbase, Conor Grogan, has shared interesting statistics on his X regarding the trader’s daily onchain activities. While some crypto users have claimed that the trader has been using a bot to launch their meme coins, Grogan disagrees, arguing that the trader’s wallet goes inactive several hours before deploying at least 200 tokens a day on Solana, unlike bots, which operate 24/7.
PumpFun founder Alon, on the other hand, says the trader in question could be using a bot to launch tokens but taking profits manually. Furthermore, he claims that trading and creating meme coins should be considered the same. Therefore, token creators shouldn’t be attacked for booking profits earlier than others.
More Traders Launch Hundreds of Tokens via PumpFun
Our lucky trader isn’t the only one to have launched a significant number of coins via PumpFun in the past few months. According to data on Dune, more than 110 wallets have deployed at least 1,000 meme coins on Solana through PumpFun.
The second and third wallets with the most created tokens have generated profits of $430,100 and $479,000, respectively, per data from GMGN. Similarly to the first wallet, the two hold tokens for a few minutes.
