A crypto insider made over $1.68 million in profits in 15 days trading in the Solana (SOL) ecosystem. The crypto trader spent 23 SOL (worth $3,300) to buy two meme coins and then sold his entire position for 11,229 SOL (worth $1.69 million).
especially, Look on Chain The firm classified the trader as a crypto insider given that the purchase occurred shortly after the launch of the token's liquidity pool. The platform reported the recent accomplishment in a post on X on June 22, tracking on-chain data from multiple addresses.
How did a crypto insider make over $1.68 million in profits trading two meme coins on Solana?
Overall, the crypto insider used 7.1 SOL and 16 SOL to purchase HULK and GUNIT, respectively.
First, multiple addresses acquired 190.2 million HULK at $1,200 each in Solana and held it for 15 days. These addresses then sold their entire positions for 5,760.7 SOL, equivalent to $974,200, a profit of 810 times their initial investment.
In the case of GUNIT, the insider spent 16 SOL (worth $2,100) to buy $366.92 million worth of the cryptocurrency. Eight hours later, the memecoin token experienced a massive surge and the trader sold his entire stack. As a result of this transaction, his holdings increased 343 times to 5,475.5 SOL (worth $719,800).
The insider then consolidated their profits into the cryptocurrency wallet address “4uh969,” which sent 3,070 SOL of the now-acquired 11,229 SOL to the Kraken address, likely realizing this profit in fiat currency.
The dangers of insiders and crypto traders speculating in meme coins
This is yet another example of how crypto industry insiders are taking advantage of retail by creating and launching meme coins and money-making schemes that profit from information asymmetries and market hype that obsess over gambling with digital assets that have poor fundamentals.
This thinking is consistent with the “greater fool theory,” which suggests that you can make a profit by buying overvalued assets and selling them to a “greater fool.”
Cryptocurrencies are inherently volatile and pose considerable risk to traders, investors, and users, even in solid, usable projects. However, trading in meme coins adds another layer of risk, often involving the flow of funds from many insiders to a few.
For this reason, investors should avoid such schemes, focus on cryptocurrency fundamentals, and carefully study supply and demand characteristics. Recent data reported by Finbold shows that the trend is shifting away from meme coins and towards better-funded projects.
Disclaimer: The content of this site does not constitute investment advice. Investing is speculative and your capital is at risk when investing.
