Trader Turns $17 into $3 Million with Squirrel-Themed Memecoin as Binance Listing Boosts Value

A trader turned just $17 into an astounding $3 million by investing in a squirrel-themed memecoin. This incredible success came after the token was listed on Binance, although the trader might have earned even more.

On October 31, an anonymous individual bought $17 worth of Pnut, a memecoin inspired by a famous squirrel. By November 11, this trader swapped those tokens for an estimated $3 million in Solana, the cryptocurrency linked to the Solana blockchain.

Meanwhile, the creator of Pnut didn’t do as well. They spent around $335 in Solana to create 1 billion Pnut tokens on October 31. Just two minutes later, they sold off 63.9 million Pnut for about $620 in Solana, making a profit of roughly $300. However, at Pnut's peak on November 11, those tokens would have been worth over $155 million.

The trader's increase of 16,470,500% showcases the wild potential of memecoins. Unlike other cryptocurrencies tied to real value, memecoins often rely solely on hype.

Every day, tens of thousands of memecoins pop up on Pump.Fun, a Solana-based platform that makes creating tokens easy. These tokens often take names from trending internet phenomena, like P’Nut, the pet squirrel that became famous after being euthanized by New York authorities. The squirrel was seized on October 30, leading to a biting incident that required a rabies test, which can only be done on dead animals.

P’Nut quickly went viral on social media, symbolizing government overreach. Influencers, including tech mogul Elon Musk, rallied around the cause. Investors often buy newly launched memecoins for just a few cents, hoping they will go viral and increase in value. This is exactly what happened with Pnut.

When the trader bought Pnut on Pump.Fun, it was worth less than a thousandth of a penny. By November 2, the price had risen to 7 cents, allowing the trader to cash out for over $150,000. But they decided to hold on. By November 11, the price soared past 40 cents. The trader began swapping Pnut tokens for Solana tokens on Raydium, a decentralized exchange, at a rate of 4,773 Pnut every three minutes.

Because memecoins are so volatile, converting them into a more stable cryptocurrency is a smart way to lock in profits before a potential drop. After about five hours, the trader paused their swaps, having exchanged less than 500,000 Pnut tokens, which was about one-fifth of their total stash.

On the night of November 12, just after 10 PM New York time, the price of each Pnut token hit 69 cents, prompting the trader to start swapping again. This time, they didn’t stop. Their timing was perfect: an hour later, Binance announced it would list Pnut, making the token accessible to a much wider audience.

On November 13, just after 2 PM New York time, the trader made their final swap, with Pnut trading at $1.50. About thirty minutes later, they transferred 13,459 Solana tokens, worth around $2.9 million, to another crypto wallet, where they remain. By midnight New York time, Pnut was trading at $2.44. If the trader had held on a bit longer, they could have sold their tokens for nearly $6 million.

In the risky world of crypto, memecoins are especially volatile. Their prices can be easily manipulated by creators or wealthy traders, often trading based on hype rather than real value. Generally, traders find it hard to make a profit from these assets.

As of November 14, it’s unclear if this newly minted millionaire can replicate their success with Pnut. Reports indicate they hold 262 different tokens, including 1.8 million Skittles tokens, 2.3 million UFO tokens, and 1.1 million of another Peanut the Squirrel token. The total market value of all these 262 tokens? A mere $99,000.