From $3K to $9M: Analyzing the Wild Ride of Solana’s GNON Crypto

• A dealer grew to become a millionaire by means of the Solana-based GNON memecoin.
• Edward Snowden criticized Solana as a hub for memecoins and fraudulent schemes.

In a shocking improvement, a cryptocurrency dealer turned a $3,000 funding right into a staggering $9 million in simply three days. This meant a 3000x return on funding.

This unimaginable achieve got here from the Solana [SOL]-based Numogram (GNON) token, a low-cap memecoin that launched on October 17.

Speculations surrounding GNON crypto

On-chain analytics firm Look at chain an October 20 submit on X highlighted the dealer’s spectacular good points by drawing consideration to the volatility inside the memecoin market.

In response to the message,

“He solely spent $3K to purchase $56 million GNON by means of 3 wallets and offered a small portion. He at the moment has $55.18 million GNON in 4 portfolios, which is value over $9 million!”

This surprising occasion despatched shockwaves by means of the crypto group, elevating considerations and suspicions that one thing uncommon was occurring behind the scenes.

Supply: InvestingHaven/X

Solana: an actual blockchain or a hub for scams?

Nicely, the rise within the variety of SOL-based memecoins, regardless of their lack of inherent usefulness, has been a notable development.

Identified for his or her wild value swings, these tokens have turned peculiar traders into millionaires nearly in a single day.

A putting instance occurred in Might when a Pepe [PEPE] token dealer managed to show a $3,000 funding right into a whopping $46 million inside a month.

Then again, nevertheless, many traders have suffered vital losses on account of memecoin-related scams.

For instance, Metallica’s X account was compromised. Hackers used it to advertise a fraudulent Solana token known as METAL.

Equally, hackers hijacked French soccer star Kylian Mbappé’s X account to advertise the memecoin MBAPPE.

Sadly, MBAPPE’s worth plummeted inside an hour, leading to devastating losses. One investor even misplaced greater than $1 million in simply 60 minutes.

In response to the growing variety of scams, former NSA contractor and whistleblower Edward Snowden criticized SOL and labeled it a hotspot for fraudulent schemes.

Snowden argued that whereas Solana’s centralization could improve effectivity, it has additionally turned the platform right into a breeding floor for memecoins and scams.

GNON crypto value developments

However regardless of missing any obvious use, the GNON memecoin just lately rose an astonishing 233% in at some point, based on GeckoTerminal information.

Speculative buying and selling has largely fueled this spike following the token’s itemizing on the Moonshot platform, a preferred vacation spot for retail merchants on the hunt for memecoin alternatives.

Nonetheless, this rally could also be transitory because the token lacks substantial improvement or a use case to help sustainable development.

On the time of writing, GNON was down 36.25% in 24 hours, highlighting the volatility typical of memecoins that’s pushed by social media hype quite than fundamentals.