Solana Insider Flips Meme Coins for $1.6 Million in 15 Days, But Here’s the Catch
Elena R24 Jun 20242 min read
In just 15 days, a crypto trader turned a mere $3,300 into a life-changing sum of over $1.6 million. How? By venturing into the wild world of Solana meme coins.
This impressive gain was achieved by investing only 23 SOL, equivalent to $3,300, in two meme coins on Solana, which he later sold for a staggering 11,229 SOL.
Read on to find out how this massive gain was achieved and what questions it raises about insider trading and the future of meme coins.
High-Stakes Trading: From $1,200 to $974,200
The trader used 7.1 SOL and 16 SOL to purchase HULK and GUNIT, respectively. Initially, several addresses acquired 190.2 million HULK for approximately $1,200 worth of Solana. After holding these tokens for 15 days, the addresses sold the entire position for 5,760.7 SOL, worth $974,200, achieving an 810x return on investment and netting $973,000 in profits.
GUNIT Gamble Pays Off
Similarly, the trader spent 16 SOL, around $2,100, to buy 366.92 million GUNIT tokens. Just eight hours later, following a significant price surge, he sold all his holdings, resulting in 5,475.5 SOL worth $719,800. This trade recorded a remarkable 343x increase in his investment.
While the purchases were made through multiple addresses, the trader consolidated all his profits, totaling 11,229 SOL, into a single account with the address ‘4uh969…5sBV9i.’ He then transferred 3,070 SOL to a Kraken address, likely to convert the gains into fiat currency.
Insider Trading at Play?
Despite the impressive returns, Lookonchain has labeled the trade as an insider job, as the purchases were made immediately following the launch of the tokens’ liquidity pools. Lookonchain reported the incident in a post on X on June 22, using on-chain data from various addresses.
The Dark, Dark Side of Crypto
Such heavy gains are a part of this industry, and many cases associated with Solana meme-coins have come forward this year. This insider trading is yet another example of how insiders take advantage of information asymmetry and create hype around newly launched cryptos in the market by also benefiting from the pump-and-dump schemes.
Do these massive gains tempt you to invest in meme coins, or does the suspected insider trading make you wary?
