An anonymous millionaire has started “crazy buying” Solana (SOL) memecoins with over $5 million since October 21. So far, the whale address has acquired more than six different tickers, some already presenting gains, while others, losses.
Notably, the millionaire trader created the wallet on Monday, receiving a total of 32,695 SOL from Binance since then. According to a Lookonchain post, this “crazy buying” activation happened to speculate in memecoins with over $5 million of SOL.
The popular GOAT token, allegedly created by an artificial intelligence (AI), received the largest allocation, worth $3.39 million. For that, the millionaire spent 18,000 SOL to buy 6.95 million GOAT while trading at $0.43.
As of this writing, GOAT has already increased $0.20 per token since the reported purchases, up over 46%. The $3.39 million purchase is now worth nearly $5 million, closely paying off all the initial millionaire investment alone.
GOAT memecoin daily price chart. Source: CoinMarketCap / Finbold
Other of this millionaire’s ‘crazy buying’ memecoins
Besides GOAT, the millionaire also purchased GIGA, FWOG, HAMMY, WIT, JACK, WTRIX, and a few others with far smaller allocations.
By the time Lookonchain posted, the 31.71 million GIGA had made the second-largest position, buying $2 million at $0.062, which is the same price at the time of this writing. FWOG was another relevant purchase, spending 2,900 SOL, worth $484,000, to buy 1.98 million of the memecoin.
In the comment section, commentators criticized the decision, saying, “That wallet must have a PhD in bad decisions!” Another comment predicted the millionaire “will be down half the portfolio in few days.”
The memecoin boom and the ‘Greater Fool Theory’
Memecoins are back in the spotlight as meme coin hunters and cryptocurrency traders deploy capital into this low-liquidity speculation. While most viral stories tell triumphant tales, the market has winners and losers, with the latter being the majority.
Interestingly, the usual behavior of “crazy buying” memecoins is motivated by the “Fear of Missing out” (FOMO), being highly emotional. Experts describe these dynamics using the “Greater Fool Theory,” developed to explain speculative financial bubbles that will soon end.
The theory explains that speculators buy into these assets without justified value, motivated by FOMO and the expectation that someone (the “greater fool”) will pay a higher price. However, it is challenging to define precisely who the greater fool is once everyone behaves similarly for the same reasons.
On that note, the European Central Bank (EBC) described Bitcoin (BTC) through this same lens on different occasions. Finbold reported some of these controversial publications when the ECB slammed Bitcoin ETFs or made a “true declaration of war.”
Investors and traders who do not want to engage in financial bubbles or assets ruled by the Greater Fool Theory should do proper research and look for investments and purchases backed by a solid thesis and fundamentals. Yet, even these allocations offer risks, and there is no guarantee of positive returns.
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