Crypto insider turns $3,300 into $1.69 million in 15 days

 

A cryptocurrency insider traded in the Solana (SOL) ecosystem and realized gains of nearly $1.68 million in just 15 days. The trader of cryptocurrency purchased two meme coins for 23 SOL, or $3,300, and then sold all of his holdings for 11,229 SOL, or more than $1.69 million.

Notably, given that the trades were made right after the coins' liquidity pools launched, Lookonchain identified this trader as a crypto insider. On June 22, the platform posted about this latest achievement on X, tracking on-chain data from several locations. 

An insider made 11,229 $SOL($1.69M) in just 2 days, costing only 23 $SOL($3,300)!

Invested 7.1 $SOL on $HULK and got 5,760.7 $SOL returned.

Invested 16 $SOL on $GUNIT and got 5,491.5 $SOL returned.

1/ Let’s dig into his trades. pic.twitter.com/zoueMhukMC

— Lookonchain (@lookonchain) June 22, 2024

 

How did the crypto insider make over $1.68 million in profits trading two meme coins on Solana?

Overall, an insider in the cryptocurrency space purchased HULK and GUNIT with 7.1 and 16 SOL, respectively.

HULK/SOL on Raydium. Source: Lookonchain

The insider paid $2,100, or 16 SOL, for 366.92 million worth of GUNIT. After a big increase in the meme coin token eight hours later, the trader sold off his whole stack. The trade produced 5,475.5 SOL, which is valued at $719,800, increasing his holdings by 343 times.

GUNIT/SOL on Raydium. Source: Lookonchain

Afterwards, the insider combined his gains into the cryptocurrency wallet address "4uh969." The address distributed 3,070 SOL to a Kraken address from the now-acquired 11,229 SOL, most likely realizing this profit in cash.

The dangers of insiders and crypto traders speculating on meme coins

This is just another instance of how cryptocurrency insiders frequently undertake money-grab scams and create meme coins to exploit the retail market. They profit from the asymmetry of information as well as the excitement created by a market that won't stop betting on subpar digital assets.

This kind of thinking is consistent with the "Greater Fool Theory," which holds that investing in overpriced assets and then selling them to a "greater fool" is a profitable strategy.

Even with reliable and practical projects, cryptocurrencies are intrinsically volatile and pose significant risks to traders, investors, and consumers. Trading meme coins, however, carries additional dangers and frequently results in insiders losing a large amount of money.

Investors should steer clear of these schemes and instead focus on a cryptocurrency's fundamentals by carefully examining its supply and demand characteristics. Finbold has released statistics that indicates the trend is moving away from meme coins and toward more solidly backed projects.

Disclaimer: This website's information is not meant to be used as investment advice. Investing is a risky endeavor. Investing involves a risk to your capital.