Anonymous Trader Nets $8.9M in Memecoin Trade Amidst Insider Trading Speculations
Summary:
An anonymous trader made a profit of $8.9 million in less than an hour by trading the memecoin Shroom (SHROOM) when liquidity was added. The event led to allegations of insider trading within the crypto community. Meanwhile, the memecoin trend continues, with the recently launched Book of Meme (BOME) token showing a significant uptick. The article also mentions controversial presale models used to raise funds for future tokens.
A trader, who prefers to stay anonymous, netted a cool $8.9 million in under 60 minutes, trading the memecoin Shroom (SHROOM) during the exact block when developers were adding liquidity. This data was unveiled by on-chain analytics. In a related matter, an undisclosed pre-sale wallet accumulated $33M worth of SOL in the same duration.
The stealthy trader invested 6,000 Solana (SOL) tokens, equivalent to $1.04 million in SHROOM, synchronously with the block where new liquidity was introduced by the token contract deployer. Just an hour later, this trader cashed out with 57,112 SOL amounting to a whopping $9.93 million, as reported on March 20 X by Lookonchain analytics.
The meme-themed Shroom token was launched via Raydium on March 20 and doesn't claim to possess any intrinsic or utility value. Despite its market cap currently resting at $11.88 million according to Geckoterminal, the token has plunged more than 70% since its debut.
The unusual timing of the lucrative trade sparked debates about possible "insider trading" within the crypto fraternity. Addressing Lookonchain’s disclosure, Blockchain Maxi, a user, argued, "That's definitely Insider Trading. Don't be fooled by the new memes, it's a losing game.” Another user Bull.Bnb supported this claim stating, "That could very well be the dev himself.”
The Shroom memecoin, which is built on Solana, started garnering interest after Trippy Labs divulged a surprise Shroom airdrop on March 20, a post that garnered more than 268,000 views in just 16 hours.
The memecoin rush does not seem to be abating anytime soon. The recently introduced memecoin, Book of Meme (BOME) has seen an astonishing rise of over 1,100% in its one-week graph, placing it as the 130th largest token with a market cap of $617 million, according to CoinMarketCap.
The Book of Meme token is a member of the new wave of memecoins that gathered funds for future tokens via a contentious pre-sale market model. In the three days leading to March 18, Solana-based presales for these memecoins amassed over $100 million worth of SOL.
This piece of news does not provide investment advice or recommendations. Every monetary investment and trading move is risky, and readers are advised to conduct thorough research before making any decision.
Published At
3/20/2024 6:48:28 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.