$85 becomes $147,000: What is the story behind the 1720x myth of meme coins

A BNB Chain address purchased meme coin “I’m Damn Coming” for $85, and now the account has an unrealized profit of $146,600. This 1720x return on this transaction has once again reshaped people’s perception of meme coins. But what is hidden behind such extreme gains?

Transaction Details Breakdown

The specifics of this transaction are as follows:

The strategy of this address is very clear: buy first, then sell part of the holdings in batches to lock in profits, while retaining most of the tokens to continue holding. This approach avoids the risk of fully cashing out and preserves the potential for further gains if prices rise.

Official Foundation Also Buying

Interestingly, this is not an isolated transaction. According to the latest news, the BNB Chain Foundation spent $50,000 over the past two days to purchase 4.83 million “I’m Damn Coming” tokens. During the same period, they also bought several other Chinese meme coins, including “Binance Life,” “Hakeem,” and “Laozi.”

What does this indicate? At least it shows that the official foundation is paying attention to these projects and even participating. This could boost market confidence in these meme coins. However, it’s important to emphasize that official purchases do not equal project endorsement; they merely indicate that the foundation is optimistic about this direction.

Behind the Meme Coin Phenomenon

The popularity of this transaction reflects a current market phenomenon: meme coins, due to their low entry barrier, high liquidity, and strong virality, have become tools for some traders seeking extreme returns.

Why can it reach 1720x?

• Very low initial liquidity: In the early stages of meme coin issuance, few trading pairs exist, and even small buys can push prices higher.
• Community effect: Once a topic is formed, rapid dissemination occurs, and new funds entering push prices up.
• Early participant advantage: Early buyers have almost zero cost basis, with unlimited profit potential.
• Lack of fundamentals: Meme coins lack cash flow and user growth metrics; their prices are entirely driven by market sentiment.

Risks are equally extreme

In my personal opinion, such 1720x returns often imply:

• Survivor bias: We see the successful cases but not the 99% that lose money.
• Narrow time window: The address made profits because it bought just before the price skyrocketed, which requires timing, luck, and informational advantage.
• Liquidity risk: Holding 4.72 million tokens means that if one tries to sell all at once, liquidity may be insufficient, causing prices to plummet.
• Regulatory risk: Meme coins are high-risk assets; policy changes could wipe out investments instantly.

What to Watch For

The frequent appearance of such extreme gains indicates that a large amount of capital is chasing meme coins. But this also means that market risks are accumulating. When many retail investors follow these cases into the market, it often signals the time for risk realization.

Summary

A 1720x return does exist, but it is an exception rather than the norm in the meme coin market. The success of this transaction stems from a perfect combination of timing, liquidity, and luck.

The participation of the official foundation has increased market enthusiasm but does not change the fundamental nature of meme coins—they are highly risky, high-reward speculative assets.

For ordinary investors, when encountering such cases, maintaining rationality is crucial: extreme gains are often accompanied by extreme risks.