are traders still making millions on meme coins? 

Meme coins are still profitable, but not for everyone. Investors told crypto.news how much they made from advertising meme coins.

Meme coins averaged a staggering 1,313% return in the first quarter. And this industry does not even think of stopping its growth, bringing millions of dollars in profits to traders.

Source: CoinGecko

It is natural for large positive price waves to occur over the course of a few days or weeks. So what is this all 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 networks. Typically, they are initially created as a joke without any practical function.

The first and most famous token was Dogecoin (DOGE), launched in 2013 based on the popular Shiba Inu dog meme. DOGE was originally intended to be a parody of Bitcoin (BTC). However, over time, this asset gained a billion-dollar capitalization.

The main difference between meme coins and traditional cryptocurrencies such as Ethereum (ETH) or Bitcoin is their inherent value and lack of emission restrictions. Their cost depends entirely on demand during the Internet boom, and therefore meme coins are characterized by increased volatility.

However, recently there has been a tendency to give more practical importance to meme coins. For example, developers of Shiba Inu (SHIB) and FLOKI are creating their own metadata, 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 from them. However, this success is often short-term and random. Over the long term, as the popularity of the internet declines, the value of most meme coins approaches zero.

Presumably those who make millions of dollars from meme tokens are insiders. Otherwise, how could these traders and investors know that the prices of certain meme coins would increase rapidly? Crypto.news editors spoke with investors who could profit on the condition of anonymity.

Frog Investments

Members of the Pepe (PEPE) crypto community are celebrating the frog token’s all-time high. Meanwhile, one user said that he turned just $90 into $1.4 million thanks to PEPE.

In mid-April 2023, a trader bought almost 6.5 trillion PEPE from the Uniswap crypto exchange just for fun. Since the initial investment amount was small, the trader did not sell the tokens and decided to watch what happens to them.

This decision turned out to be the most correct one – 6.5 trillion PEPE in May 2024 made the anonymous trader a dollar millionaire. However, a user nicknamed Mina said that he did not plan to sell PEPE and now believed that the price of frog money would exceed $1 one day.

“Sometimes I want to sell my PEPE, but I keep this as a reminder to not rush. The meme coin market has not yet finished conquering the tops and my PEPE will probably make me a billionaire within a year.”

Mina, anonymous trader Her belief in dogs and her love of hats

A trader from the Meme coin Telegram community shared an impressive winning story regarding the Dogwifhat (WIF) coin. But this is unlike the inspiring stories of traders whose coins grow 1000x per hour.

The anonymous trader used a different strategy: HODL. It acquired 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 around $500 worth of tokens, expecting further growth. As a result, he made about $15,000 just by keeping his assets on his balance sheet.

“I’ve heard stories of traders making billions of dollars in profits starting from just $100. But as an active participant in the crypto community, I think these stories are the exception to the rule. The meme coin market is still very transparent and confusing, so inspiring stories about traders are probably just insider trading.”

Meme coin community member More conservatism

Another crypto community member going by the pseudonym Andilet called for caution when investing in meme coins and shared his strategy to diversify assets. He recommended splitting the crypto portfolio based on risk level, with 10% of the portfolio consisting of high-risk, volatile coins, including meme coins.

Despite the high risk, it seemed appropriate to allocate a portion of the portfolio to meme coins because meme coins are more likely to generate significant profits.

“In general, it is difficult to predict how the meme coin market will behave in the long term, because with memes everything depends heavily on the hype, and it is difficult to predict the level of this.”

Andilet, SHIB investor

He invested in a Shiba Inu in the summer of 2023, spending approximately $5,000 to purchase the coin at a price of $0.0000077. Now, with a SHIB rate of $0.000025, his assets are worth about $50,000.

“I believe that an individual approach to each project is important when it comes to mem coins. “By examining the project closely, you can predict the trend in the short and medium term.”

Andilet, SHIB investor In summary: to invest or not to invest?

Investing in meme cryptocurrencies is a significant risk. This can bring a solid profit due to speculation, successful exit timing and a complete loss of capital. The main thing is to monitor social networks, read the news, be able to search for information and try to get it the first time a media personality mentions any meme coin.