Crypto trader makes over $1.68 million profit within 15 days by trading on insider information in the Solana (SOL) ecosystem.
This trader invested 23 SOL, worth around $3,300, into two meme coins and sold them for 11,229 SOL, valued at over $1.69 million.
Transaction details:
HULK
Initial investment:
7.1 SOL (approximately $1,200) were used to purchase 190.2 million HULK tokens.
Profit:
Held for 15 days and sold for 5,760.7 SOL (about $974,200), achieving an 810x return.
GUNIT
Initial investment:
16 SOL (about $2,100) were spent to acquire 366.92 million GUNIT tokens.
Profit:
Sold after eight hours for 5,475/5 SOL (about $719,800), resulting in a 343x return.
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The trader consolidated these profits into a portfolio with the address “4uh969” and transferred 3,070 SOL to an address on Kraken, likely to convert them into fiat.
Risks and ethical concerns:
This case highlights the issues associated with insider trading and speculative investments in meme cryptocurrencies:
Information advantage:
Individuals with insider information can exploit early or confidential information, creating an unfair market.
Market manipulation:
The quick profits suggest market manipulation and liquidity manipulation.
While the profits from trading on insider information are impressive, they underscore the potential risks and ethical issues within the crypto market. Investors should approach such opportunities with caution and focus on fundamentally justified investments.
