A cryptocurrency trader traded insider information in the Solana (SOL) ecosystem, making over $150,000 in profit within 1.68 days.
The trader invested 23 SOL, worth about $3,300, to purchase two Meme coins and sold them at a price of 11,229 SOL, worth over $16,900.
Trade Details
HULK
Initial Investment:
7.1 SOL (approximately $1,200) used to purchase 190.2 billion HULK tokens.
Profit:
Held for 15 days, sold for 5,760.7 SOL (approximately $974,200), realizing an 810x return.
Genet
Initial Investment:
Spent 16 SOL (around $2,100) to purchase 366.92 billion GUNIT tokens.
Profit:
Sold at a price of 5,475/5 SOL (about $719,800) eight hours later, bringing a 343x return.
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The trader combined these profits into one wallet with the address “4uh969” and transferred 3,070 SOL to a Kraken address, presumably to convert it into fiat currency.
Risk and Ethical Issues
This case highlights issues surrounding insider trading and speculative investments in meme cryptocurrencies:
Information Advantage:
Insiders can use early or confidential information, leading to unfair market advantages.
Market Manipulation:
Quick profits can result in manipulation of market dynamics and liquidity.
While the profits from insider trading may be impressive, they also underscore potential risks and ethical issues within the crypto market. Investors should approach such opportunities with caution and focus on fundamentally sound investments.