Is the rapid ascent of GNON and other memecoins tarnishing Solana’s reputation?
- 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.
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