Solana meme coin Pippin rises, millionaire whale acts fast

A crypto millionaire who made his fortune trading popular Solana meme coins has purchased another one despite continued weakness in the market.

According to Lookonchain, the investor invested $7.5 million in Dogwifhat (WIF), the third largest Solana (SOL) meme coin. The market value of the token increased from $58 million to $1.5 billion.

The millionaire also made $1.2 million by investing in Squirrel Peanuts (PNUT), which has a market cap of $460 million. According to CoinGecko, the market value of the token has risen to over $2.2 billion.

Now, he has invested in Pippin (PIPPIN), a new Solana meme coin with a market cap of over $262 million. He spent $1.5 million to buy the token, and according to Nansen, he still has $600,000 in unrealized profits.

Nansen data shows top Pippin investors have already made millions. The most profitable investor earned $8.48 million, representing an 855% return on investment.

Three other millionaires earned over $4 million, while another three millionaires earned over $3 million.

Pippin token profit leaders | Source: Nansen

On-chain data shows that the WIF, PNUT, and PIPPIN millionaire described above have previously made other high-profit transactions. He earned $1.12 million from Super Trump (TREMP), $176,250 from MINI, and $103 million from CHAOS. Its portfolio includes Tether, APY, Bongo, BIS and ZOA. Over time, he made a profit of $10 million.

New Pippin millionaire’s portfolio | Source: Nansen Solana meme coins = market cap in billions

Meme coins can indeed mint millionaires, but the process is often fraught with significant risks, and large rewards often favor insiders or traders who time the market perfectly.

This is especially true for Solana, which remains the top choice for meme coins like Pippin due to its transaction speed, low fees, and developer tools. Its ecosystem, which includes DeFi and NFTs, supports liquidity and community growth, while its scalability and decentralized structure make it ideal for the development of speculative projects.

According to CoinGecko, the market value of Solana meme coins has accumulated over $16.6 billion, while the ones that have attracted the most attention lately have been Bonk, Pudgy Penguins, Dogwifhat, ai16z and Fartcoin. All meme coins are worth over $108 billion.

Pippin’s price rose 13% following the Lookonchain report, trading at $0.26, up over 4,400% from this week’s low.

The risk, though, is that the token is subject to a massive reversal. After all, most other Solana meme coins followed suit once the hype died down. For example, WIF is down 67% from last year’s high, while the ai16z price is down from this week’s high.

These crashes can be explained by the Wyckoff Method, which explains how asset prices rise and fall. It begins with the hoarding phase, followed by higher demand and marking characterized by fear of missing out, or FOMO. Smart money investors start exiting during the distribution phase, leading to a decline during the price reduction phase.

Pippin’s popularity is growing rapidly

According to Memecointer.com, Pippin was created by venture capitalist Yohei Nakajima, whose involvement with AI led to the design of the Pippin unicorn logo through the latest broad language model benchmarks in ChatGPT 4.0.

Nakajima, who is followed by billionaires Jeff Bezos and Marc Andreessen, leads venture capital firm Untapped Capital with entrepreneur Jessica Erin Jackley.

Additionally, Nakajima is the founder of the BABYAGI open source project, further highlighting his contributions to the artificial intelligence community.