Insider" Allegedly Sells off MAGA Memecoin, Lookonchain's Credibility Questioned
Summary:
An alleged "insider" has been found selling off nearly 80 billion MAGA memecoins, a politically-themed cryptocurrency, according to blockchain observer Lookonchain. The initial purchase, believed to be executed by an MEV bot, amounted to 33.37% of the total supply for about $20,000. The coins sold, netting roughly $1.05 million, with additional tokens still on hand. After Lookonchain failed to respond to queries about potential MEV bot involvement, the company's credibility was called into question. The coin, themed after Trump's "Make America Great Again" slogan, saw a bump in value following Trump's pro-crypto remarks. Nevertheless, the volatile nature of such currencies is emphasized, as evidences by the $1.9 million exploit suffered by memecoin creation platform, pump.fun.
Lookonchain, an account centered on blockchain examination, points to an "insider" who has been offloading the politically-motivated memecoin, MAGA, with a sale of nearly 80 billion tokens for 320 Ether, totaling $1.05 million. This alleged insider initially purchased 140.4 billion MAGA tokens (equivalent to 33.37% of the total supply) via 22 wallets for a mere 5.35 Ether (ETH), a sum that is approximately $20,000. Out of the 140.4 billion MAGA tokens, the insider still possesses about 60 billion tokens, with a value surpassing $9 million.
However, recent insights hint at maximal extractable value (MEV) bot operations as the source of these transactions, rather than an "insider" selling off. Dominium, a user of DominiumX, suggested that the transactions that Lookonchain singled out bear the hallmarks of MEV bot activities — leveraging arbitrage opportunities to generate substantial MAGA profits.
When Cointelegraph reached out to Lookonchain and Dominium regarding commentary, they were met with silence, prompting Dominium to challenge Lookonchain with a series of detailed transaction breakdowns. The lack of response from Lookonchain and the exposure of a possible MEV bot operation have led to criticism and questioning of Lookonchain's credibility.
The memecoin MAGA, themed after Donald Trump's "Make America Great Again" campaign slogan, experienced a surge following Trump’s recent pro-cryptocurrency remarks. However, despite their popularity, the market's volatility and inherent risks persist, as demonstrated by an exploit endured by the memecoin making platform, pump.fun. The employee implicated in the $1.9 million exploit now reports being under arrest in the U.K. and currently on bail.
Published At
5/21/2024 3:35:22 PM
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