Insider Trader Turns 0.34 ETH into $550K in Couple of Hours
A developer who was an insider trader has managed to turn only 0.34 ETH tokens, worth $878, into approximately $550,000 in just a few hours after trading a newly introduced memecoin. Data from the blockchain suggests it’s likely that the trader is the developer behind the coin.
On-Chain Analysis of the Insider Trader’s Actions
On-chain analysis service Lookonchain indicates that the trader spent the 0.34 ETH tokens to buy 80 million $FERRET tokens, which were spread across five different wallets. The tokens were bought just as $FERRET opened for trading. The trader then sold 11.8 million $FERRET tokens for 21 ETH, worth around $54,000, and is still holding onto 68.2 million $FERRET tokens, worth nearly $500,000.
Rising Concerns and Warnings from Regulators
Traders and regulators have become increasingly concerned about insider trading in the cryptocurrency space, particularly for memecoins that lack oversight and transparency. Regulators like U.S. Securities and Exchange Commission Chair Gary Gensler have warned of the “serious risks” of cryptocurrency trading as some retail investors chase volatile and illiquid cryptocurrencies.
Another Trader Turns $10,000 into $1 Million
Another trader managed to turn $10,000 into a $1 million stash in just 10 days, capitalizing on a small change in the profile of X CEO Elon Musk, who wrote “(CTO) Chief Troll Officer) on his profile.
Trader’s Advantageous Moves
Seeing the move, the trader withdrew 4.313 ETH tokens from leading cryptocurrency exchange Binance, spending 4.3 ETH to buy 19.37 tokens of the $TROLL cryptocurrency. The trader later on sold 9.37 trillion tokens for 5.318 ETH, worth around $12,400, to get a return on their investment, and is now still holding onto 10 trillion tokens worth over $1 million.
Hot Take
Insider trading and advantageous moves by traders taking advantage of influential figures continue to draw attention and concern in the cryptocurrency space as regulators warn of the risks involved in chasing volatile and illiquid cryptocurrencies to get rich quickly. These instances indicate the need for transparency and oversight in the crypto markets.
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