From $3K to $9M: Analyzing the wild ride of Solana’s GNON crypto

• A trader turned millionaire through the Solana-based GNON memecoin.
• Edward Snowden criticized Solana as a hub for memecoins and fraudulent schemes.

In a surprising development, a cryptocurrency trader turned a $3,000 investment into a staggering $9 million in just three days. This marked a 3000x return on investment.

This incredible gain came from the Solana [SOL]-based Numogram (GNON) token, a low-cap memecoin that was launched on 17th October.

Speculations surrounding GNON crypto

On-chain analytics firm Lookonchain in a 20th October post on X highlighted the trader’s impressive profit by drawing attention to the volatility within the memecoin market.

According to the post, 

“He spent only $3K to buy 56M $GNON via 3 wallets and sold a small part. He currently holds 55.18M $GNON across 4 wallets, worth more than $9M!” 

This shocking event sent ripples through the crypto community, sparking concerns and raising suspicions that something unusual was unfolding behind the scenes.

Source: InvestingHaven/X

Solana: A genuine blockchain or a hub for scams?

Well, the surge in SOL-based memecoins, despite their lack of inherent utility, has been a notable trend.

These tokens, known for their wild price swings, have turned ordinary investors into millionaires almost overnight.

One striking example occurred in May when a Pepe [PEPE] token trader managed to transform a $3,000 investment into a staggering $46 million within a month. 

However, on the flip side, many investors have faced significant losses due to memecoin related scams.

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

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

Unfortunately, MBAPPE’s value plummeted within an hour, resulting in devastating losses. In fact, one investor lost over $1 million in just 60 minutes.

In response to the increasing number of scams, former NSA contractor and whistleblower Edward Snowden criticized SOL, labeling it a hotspot for fraudulent schemes.

Snowden argued that while Solana’s centralization may enhance efficiency, it has also turned the platform into a breeding ground for memecoins and scams.

GNON crypto price trends

Yet, despite lacking clear utility, the GNON memecoin recently surged an astounding 233% in a single day, according to GeckoTerminal data.

Speculative trading largely fueled this spike after the token’s listing on the Moonshot platform, a popular destination for retail traders chasing memecoin opportunities.

However, this rally may prove fleeting, as the token lacks substantial development or a use case to support sustained growth.

As of press time, GNON dropped 36.25% in 24 hours, highlighting the volatility typical of memecoins driven by social media hype rather than fundamental factors.