A sharp social media mention from Binance’s co-founder sparked a frenzy around the new “4” token, turning one trader’s modest bet into a seven-figure windfall.
In a dramatic display of how fast fortunes can shift in crypto, a trader reportedly transformed a $3,000 investment into nearly $2 million within hours after Binance co-founder Changpeng “CZ” Zhao mentioned the “4” memecoin on X. Blockchain records reveal that the investor, known by the wallet address “0x872,” was among the earliest buyers of the newly launched token on the BNB Chain, before the price exploded following CZ’s post.
Blockchain analytics from Lookonchain showed the trader’s holdings skyrocketed over 650x, yet they have sold only a small fraction — still holding $1.88 million worth of tokens.
The Origin of the “4” Memecoin
The token emerged in the aftermath of a phishing attack on the BNB Chain, where the hacker managed to earn just $4,000. Instead of fading away, the crypto community turned the event into a meme moment, launching the “4” token as a humorous tribute to the small-scale exploit.
CZ’s repost of the BNB Chain’s statement instantly fueled viral attention, leading to an avalanche of buying from retail and “smart money” traders tracked by analytics platforms.
Market analyst David Kim noted, “This case shows how social media sentiment can create powerful short-term rallies, especially in meme-based assets with a compelling story.”
Smart Money Joins the Frenzy
According to Nansen data, “4” quickly became the third-most-bought token by top-performing traders on the BNB Chain within 24 hours. Collectively, they purchased around $100,000 worth of the token, further amplifying its momentum.
Another early investor, who bought minutes before CZ’s post, reportedly saw their position jump over $1.5 million in value shortly after, according to Bubblemaps.
Despite having no intrinsic utility, memecoins continue to deliver extreme returns for risk-tolerant traders. Earlier in 2024, similar cases involved investors turning $2,000 into $43 million with the PEPE token and another transforming $27 into $52 million.
Market commentator Lisa Wu stated, “Memecoins are less about fundamentals and more about community energy and timing. When a major figure like CZ engages, liquidity floods in instantly.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.