A cryptocurrency trader has achieved one of the most spectacular returns in recent memory, turning a modest $3,000 investment into approximately $2 million within hours after Binance co-founder Changpeng “CZ” Zhao amplified a memecoin through his social media presence. The extraordinary gain represents a 650x return on investment, highlighting the volatile and unpredictable nature of meme-based cryptocurrency tokens.
The windfall occurred when the trader, identified by blockchain analytics as wallet address “0x872,” became one of the earliest buyers of the newly launched “4” token on BNB Chain. The timing proved impeccable, as CZ’s subsequent post to his 8.9 million followers on X (formerly Twitter) sent the token’s price into a parabolic surge that captured the attention of the broader cryptocurrency community.
The “4” memecoin emerged from an unusual circumstance – a phishing attack on BNB Chain that netted the perpetrator merely $4,000 in profit before the community transformed the incident into a viral meme. This grassroots response demonstrates the unique culture within cryptocurrency communities, where even security breaches can become catalysts for speculative trading opportunities.
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According to blockchain data from Lookonchain, the successful trader invested $3,000 worth of BNB tokens into the “4” memecoin during its early hours. Despite the massive paper gains, the trader has shown restraint by selling only a small portion of their holdings, retaining approximately $1.88 million worth of the tokens as of the latest reports.
The trader’s portfolio composition reveals an aggressive betting strategy, with over 98% of their cryptocurrency assets concentrated in the “4” token. This high-risk approach paid off spectacularly in this instance, though it underscores the dangerous concentration risk inherent in memecoin speculation.
Another unknown wallet also capitalized on the opportunity, purchasing the memecoin minutes before CZ’s influential post. This trader reportedly saw gains exceeding $1.5 million within hours of their transaction, according to blockchain data visualization platform Bubblemaps.
On-chain analysis reveals that “4” has become the third-highest token in terms of “smart money” purchases on BNB Chain, indicating that sophisticated traders and algorithms have identified the token as a significant opportunity. This smart money involvement often signals increased institutional or professional trading interest.
The “4” Memecoin Phenomenon
The “4” token represents a unique case study in how cryptocurrency communities can transform negative events into profitable opportunities. The memecoin’s origin story begins with a phishing attack targeting BNB Chain’s official social media accounts, where hackers used the compromised platform to promote fraudulent links and tokens.
Following the security breach, the attacking party managed to extract only $4,000 from their elaborate scheme before being thwarted by community vigilance and platform security measures. Rather than treating this as merely a cautionary tale, the BNB Chain community embraced the irony of the situation and created the “4” token as a satirical response.
The token’s market capitalization reportedly peaked at approximately $200 million before experiencing the sharp corrections typical of memecoin trading patterns. This volatility underscores the speculative nature of such investments and the importance of understanding the risks involved in memecoin trading.
Community-driven sentiment has been the primary driver of the token’s value, with social media amplification playing a crucial role in its viral adoption. The decentralized nature of the token’s creation and distribution has resonated with cryptocurrency enthusiasts who value grassroots, community-led initiatives.
BNB Chain’s Role and Response
BNB Chain found itself at the center of this unusual sequence of events, first as the victim of a phishing attack and subsequently as the blockchain hosting one of the year’s most talked-about memecoins. The network’s response to the security incident demonstrated both its vulnerability and resilience in handling social engineering attacks.
The phishing attack temporarily compromised BNB Chain’s official X account, which boasts over four million followers. The attackers used this access to share malicious links and promote their fraudulent tokens to the unsuspecting audience, representing a significant breach of trust for the platform’s community.
Following the incident, BNB Chain implemented additional security measures and attempted to distance itself from the resulting memecoin speculation. The platform even deleted educational content and attempted token supply burns to discourage further speculation, though these efforts proved largely ineffective against community enthusiasm.
The network’s handling of the situation highlights the challenges that major blockchain platforms face when their security is compromised and subsequently becomes the subject of viral social media content. The incident serves as a reminder of the importance of robust security protocols for high-profile cryptocurrency infrastructure.
CZ’s Market Influence
Changpeng Zhao’s influence on cryptocurrency markets remains substantial despite his reduced official role at Binance following regulatory settlements. His social media post about the “4” token incident reached 8.9 million followers, demonstrating the continued power of his commentary to move markets and shape investor sentiment.
CZ’s post specifically addressed the irony of the situation, noting how the community had “bought the meme coin higher, as a mock to the hacker” after the attacker had dumped their tokens for minimal profit. This observation helped legitimize the community’s response and provided implicit endorsement of the memecoin’s cultural significance.
The timing of CZ’s social media engagement proved crucial for early investors, with several traders apparently positioning themselves strategically around his posting schedule. This pattern reflects the ongoing influence that prominent cryptocurrency figures maintain over market dynamics, particularly in the highly sentiment-driven memecoin sector.
However, CZ has maintained that his posts should not be interpreted as investment advice or endorsements, consistently disclaiming responsibility for trading decisions based on his social media content. This cautious approach reflects lessons learned from previous regulatory scrutiny of influential figures in the cryptocurrency space.
Key metrics surrounding the “4” token surge include:
- Initial investment: $3,000 in BNB tokens
- Peak value: $2 million (650x return)
- Current holdings: $1.88 million retained
- Market cap peak: $200 million
- CZ’s follower reach: 8.9 million on X
- Smart money ranking: 3rd highest on BNB Chain
The extraordinary returns achieved by early “4” token investors have attracted attention from both retail traders and institutional observers studying memecoin market dynamics. The event demonstrates how quickly fortunes can be made and lost in the cryptocurrency space, particularly when social media amplification coincides with community-driven narratives.
Market analysts have noted that such extreme returns, while spectacular for successful traders, represent significant risks for those who enter positions after initial price surges. The volatile nature of memecoins means that rapid gains can quickly transform into substantial losses if market sentiment shifts.
The involvement of “smart money” traders in the “4” token suggests that sophisticated market participants are increasingly monitoring memecoin launches for potential opportunities. This development indicates a maturation of trading strategies around social sentiment and viral content in cryptocurrency markets.
Chinese Key Opinion Leaders (KOLs) have also driven additional speculation around the token, despite warnings from analysts about the lack of intrinsic value in memecoin investments. This international interest has contributed to sustained trading volume and continued price volatility.
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The “4” memecoin phenomenon represents a significant case study in how modern cryptocurrency markets respond to viral content and influential endorsements. While individual traders have achieved remarkable gains, the broader market impact includes increased scrutiny of memecoin trading practices, heightened awareness of social media’s role in price discovery, and continued questions about the sustainability of sentiment-driven cryptocurrency valuations. As the crypto industry matures, such events serve as important reminders of both the opportunities and risks inherent in this rapidly evolving financial landscape.
- Memecoin
- A cryptocurrency created as a joke or meme, typically based on internet culture or viral content. These tokens often lack fundamental utility but can experience significant price volatility driven by social media attention and community sentiment.
- Smart Money
- Refers to capital controlled by experienced, well-informed investors, institutions, or market makers. In cryptocurrency contexts, smart money often describes wallets and traders who consistently identify profitable opportunities before retail investors.
- Market Capitalization
- The total value of a cryptocurrency calculated by multiplying the current price by the total number of tokens in circulation. It represents the theoretical total value of all tokens if sold at the current market price.
- Phishing Attack
- A cybersecurity attack where malicious actors impersonate legitimate entities to steal sensitive information or funds. In cryptocurrency, phishing often involves fake websites or compromised social media accounts used to trick users into revealing private keys or sending funds to fraudulent addresses.
- BNB Chain
- A blockchain network originally created by Binance that supports smart contracts and decentralized applications. It operates parallel to Binance Smart Chain and uses BNB as its native token for transaction fees and network operations.
