As the non-fungible token (NFT) market continues to thrive, meme coins are gaining traction, sparking a new trend known as “meme coin season.” The growing popularity of these digital assets has caught the attention of NFT influencers, who are increasingly participating in the meme coin market.
A recent analysis by LookOnChain, a leading blockchain analytics platform, has shed light on the profits and losses experienced by eight prominent NFT influencers involved in trading meme coins.
Meme coins are cryptocurrencies inspired by internet memes and often have little to no underlying utility. However, they have gained significant value due to their viral nature and community-driven appeal. While not directly related to NFTs, meme coins are part of the broader digital asset ecosystem that includes NFTs, cryptocurrencies, and other blockchain-based assets.
The LookOnChain study revealed that four out of the eight influencers made a profit on meme coins, suggesting that trading these coins can be risky.
https://twitter.com/lookonchain/status/1658089349651763200
The more meme coins an influencer traded, the higher the likelihood of losing money. However, some influencers bucked this trend, achieving impressive profits.
Two meme coins that have recently gained prominence in the market are PEPE and TURBO.
Profits with PEPE coin
PEPE, a meme coin inspired by the popular Pepe the Frog internet meme, has attracted the attention of several NFT influencers.
Vince Van Dough, for example, spent 90 ETH (approximately $167K) to purchase 96 billion PEPE coins. When he later sold 90 billion of those coins, he netted a profit of around $18K.
Another influencer, Ohhshiny, invested 326 ETH (approximately $610K) into 700.66 billion PEPE coins, later selling a large portion of them for 496 ETH (roughly $956K). The total profit from this transaction amounted to a significant $731K.
Similarly, ColeThereum traded 18 meme coins and lost a total of $3,365. The influencer only saw profits on six coins – with a win rate of 33%.
Profits with Turbo coin
TURBO, another popular meme coin that was recently launched by a digital artist with the assistance of Chat GPT, has also generated profits for some influencers.
For instance, the NFT influencer Zeneca saw a profitable return on his investment in TURBO. He initially invested 16.5 ETH, equivalent to $31K, purchasing 60 million TURBO coins. With TURBO’s current Zeneca has realized a profit of $14K.
On the other hand, Dingalingts spent around $50K on FOUR, THEND, TURBO, and COPE, only making money on TURBO.
Losses in meme coin investments
However, not all influencers enjoyed such success. Machibigbrother, who invested 258 ETH (around $471K) into PEPE coins, is currently experiencing a loss, given the current price of PEPE. The influencer ended up losing a total of $20,425 in the process.
BoredGenius also found himself in the red, losing approximately $7,199 from trading in seven different meme coins, resulting in a win rate of 29%
These findings illustrate the unpredictable nature of the meme coin market and the importance of carefully selecting trading strategies.
While some NFT influencers have managed to profit from their investments, others have experienced losses, highlighting the potential risks and rewards associated with meme coin trading.
