Strategic Investor Nets $2.7M from MAGA Memecoin Amid Insider Trading Allegations
Summary:
A strategic investor, known as "0x303", invested over $535,000 in MAGA, a Donald Trump-themed meme token, on May 25 and made a $2.7 million profit within three days. This significant return on investment led to suspicion of insider trading, but some believe that it might have been caused by maximal extractable value bot activity. The price of MAGA has seen remarkable surges, largely associated with pro-crypto comments by Donald Trump. However, the risk in memecoin investments remains high, as one trader recently lost over $1 million following a memecoin exploit.
An astute investor garnered a $2.7 million windfall in just a span of three days from the Donald Trump-centric MAGA (TRUMP) meme token. Known as "0x303" in the memecoin world, the investor shelled out over $535,000 to acquire six billion MAGA tokens on May 25th, resulting in a massive return of more than 505 times his initial stake, as reported by Lookonchain on May 27: “0x303 invested $537.5K to acquire 6B $MAGA between May 24 and May 25, before selling off 1.5B $MAGA for 744K $USDT to secure profits. The wallet currently has 4.5B $MAGA, valued at $2.51M.”
MAGA's trader's token purchases were highlighted by Lookonchain. The strategic investor's wallet is wholly comprised of MAGA tokens, which have experienced an increase of over 82% in the last day. The wallet's value is over $2.2 million as of now and earlier today, it was worth over $4 million, as per CoinStats data.
The MAGA token has witnessed substantial spikes in value following pro-cryptocurrency comments by Republican presidential candidate, Donald Trump. In an instance on May 9, MAGA's price soared by over 78% within a day, with trade volumes jumping by over 62% to reach $281 million, consequent to Trump expressing his support for cryptocurrency.
In the meme-token domain, the investor's $2.7 million profit stirred widespread suspicions of insider trading, with Datawallet commenting on Lookonchain's post, suggesting that no one would invest $500k in a memecoin without inside information. Earlier, Lookonchain had flagged that an insider was offloading MAGA memecoins, purchased with 5.35 Ether (ETH) to receive 33% of the MAGA supply using 22 distinct wallets.
However, Dominium, an anonymous user, believes these transactions might be due to maximal extractable value (MEV) bot activity — exploiting arbitrage possibilities for hefty MAGA profits — rather than internal trading: “These seem to be MEV bot transactions upon careful scrutiny.”
Whether the MAGA surge was underpinned by insiders or not, it is clear that memecoins continue to carry considerable risks and exhibit price volatility. One unlucky memecoin trader, unfortunately, lost over $1 million owing to the Normie memecoin exploit, registering an over 99% hit to his original $1.16 million investment.
Published At
5/27/2024 4:09:57 PM
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