In a year marked by unpredictable market movements, one cryptocurrency investor has defied expectations. With an initial outlay of just $68,700, this savvy trader transformed their investment into approximately $9.4 million by wagering on a digital token linked to a social media security breach.
According to a report released on October 3rd by Lookonchain, a blockchain analysis company, the investor acquired 63.07 million units of a Binance Smart Chain-based token identified as “4” on October 1st. The purchase involved exchanging 68 BNB for the substantial token holding.
In a mere 48 hours, the value of this crypto portfolio experienced an astounding surge, increasing by more than 135 times its original value. This resulted in an unrealized profit of approximately $9.3 million for the holder. This remarkable incident underscores the inherent volatility and potential for significant gains (and losses) associated with memecoin speculation.
Unlike standard cryptocurrencies with established use cases, memecoins often lack intrinsic value. Their trading activity is predominantly driven by social media trends and community sentiment. While this characteristic makes them inherently risky, the possibility of exponential profits continues to attract adventurous investors.
The Unique Story Behind the “4” Memecoin
The “4” memecoin has a rather unconventional origin story. On October 1st, the official X (formerly Twitter) account of BNB Chain was compromised by malicious actors who proceeded to disseminate phishing links to unsuspecting users.
BNB Chain subsequently issued a statement confirming the security incident, indicating that ten malicious links were distributed during the breach. They estimated total losses across various networks resulting from the attack to be roughly $8,000, with one unfortunate user incurring a loss of approximately $6,500.
Yu Xiang, the founder of Slowmist, a prominent blockchain security firm, has attributed the attack to the Inferno Drainer group. He stated:
“[This is] another phishing scheme linked to the well-known Inferno Drainer phishing operation. Based on the analysis of one of the phishing wallet addresses, the number of affected individuals could be in the dozens.”
Inferno Drainer is a notorious entity that offers “drainer-as-a-service” tools. These tools empower scammers to create deceptive websites and accounts designed to extract funds from unsuspecting victims, typically in exchange for a percentage of the stolen assets.
Simultaneously, during the period of unauthorized access, the attackers also launched the “4” memecoin. They liquidated their initial holdings, generating approximately $4,000 in revenue. Subsequently, they manipulated market conditions to inflate the token’s price before executing another exit strategy, securing an additional $22,000 before relinquishing control of the project.
Ordinarily, this would signify the end of the token’s existence. However, instead of fading into obscurity, the “4” token unexpectedly experienced a resurgence. Crypto traders collectively pooled liquidity, effectively wresting control of the project from the original attackers and transforming it into a community-driven asset.
This unanticipated development triggered a substantial price increase. Data from Dexscreener indicates that “4” has surged by nearly 200% in the preceding 24 hours. As of the time of this report, it is trading at $0.1775, boasting a market capitalization exceeding $150 million.