Crypto kid rugs traders for $30k profit, misses $4 million gains 
Cryptocurrency Nov 20, 2024 Share
In another cautionary tale against chasing “greater fool” games, a kid rug-pulled crypto traders for an unexpected $30,000 profit. However, the self-called “degen” market struck back, sending the memecoin up, making the kid miss over $4 million in gains.
Interestingly, this recent memecoin rug pull happened live as the kid was streaming the whole process, guided by a mentor. It is notable how euphoric and surprised he gets after selling and collecting the money, giving his middle fingers to the camera after fooling his audience.
Kid makes a coin then dumps on people for $30k while live-streaming 😭pic.twitter.com/LoanyydtYX
— TTI (@TikTokInvestors) November 20, 2024
According to Lookonchain, the kid sold 51 million $Quant for 128 SOL, worth $30,000, making a $29,600 profit. Yet, the buzz following the rug pull attracted even more liquidity to the memecoin, with the 51 million tokens achieving a $4 million nominal value by Lookonchain posting time.
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Quant kid creates two more crypto memecoins and rugs again
As the crypto community struck back, even doxxing the kid’s family, he created another memecoin called “im sorry” (sorry). Traders bought into it again, just to suffer another rug pull from the kid.
Besides $sorry, the Gen Z Quant creator also deployed $lucy for his third rug pull in a roll. As Lookonchain reported, the kid amassed another $24,000 worth of 103 SOL in profits for $sorry and $lucy.
A kid created a coin $Quant while live-streaming and sold all of it for 128 $SOL($30K), making a profit of $29.6K!
The 51M $Quant he sold is now worth $4M!
He then created $lucy and $sorry, selling all of them for another profit of 103 $SOL($24K)!
Address:… pic.twitter.com/TYbS6psUYp
— Lookonchain (@lookonchain) November 20, 2024
Gen Z Quant ($QUANT) memecoin price analysis
Finbold retrieved data from dexscreener at 1 p.m. UTC on November 20, priced at $0.05935, sustaining its gains. Quant is up 55,770% in the last 24 hours and the kid’s sold stash would now be worth slightly over $3 million, with a $60.3 million market cap.
The Quant/SOL liquidity pool, however, only has a $2 million liquidity, which would difficult any profit realization.
Notably, from 175,412 total transactions, 95,659 were of crypto traders buying the kid’s memecoin after the rug pull.
Quant/SOL on Raydium, 15-minute candlesticks. Source: dexscreener.com / Finbold
Memecoin rug pulls and the greater fool theory
This story exemplifies the greater fool theory when traders buy into an overpriced asset, expecting to sell it higher later. The kid’s early exit for $30,000 was a classic rug pull, creating the memecoin with the only intention of extracting the market’s liquidity.
Traders, hoping to flip the coin for more, became the greater fools of Gen Z Quant’s creator. Nevertheless, they did it with the expectation of doing the same thing with greater fools, victims of their own greed.
Commenting on the matter, Kermit warned memecoin traders that most of them will end up becoming somebody else’s exit liquidity, losing money while chasing the illusion of making millions of dollars.
“You are not part of the 0.5% who can come out of this memecoin craze a winner. Most of us will lose more than we will make. Half of the timeline will make you believe that you can make millions every day trading memecoins. Instead, you will lose most of your wealth chasing someone else’s. The timeline isn’t trying to help you become a millionaire, it is trying to make you its exit liquidity.”
The cycle of greed was evident as investors continued buying even after the initial rug pull. Ultimately, memecoin markets became popular this cycle, with crypto traders trying to outsmart each other in a player-versus-player extractive game.
Featured image from Shutterstock.