Trader Makes Over $1.6M By Trading Meme-Inspired Cryptocurrency
A cryptocurrency trader recently made $1.6 million by quickly trading the Solana-based meme-inspired cryptocurrency Wen ($WEN).
The trader spent $125,500 worth of USDC to buy 20 billion WEN tokens, then sold 12.5 billion tokens for over $807,000, realizing a gain of $682,000 in the process. The trader still holds 7.6 billion tokens worth over $900,000.
X Users Air Thoughts On the Findings
Users on X’s microblogging platform shared their thoughts on the findings. Some suggested these types of moves aren’t made by savvy traders but instead by project insiders taking advantage of their followers.
The price of the meme-inspired cryptocurrency hit a high of over $900 shortly after trading but has now collapsed to $0.00017 per token, suggesting a pump and dump scheme.
Insiders Plan Pump and Dump Scheme
The meme-inspired cryptocurrency’s price action suggests insiders planned a pump and dump scheme, where the value of an asset is boosted through exaggerated or false statements, followed by the insiders dumping their holdings on other investors.
These schemes are commonly seen in assets with micro or small market capitalizations and are relatively common in the cryptocurrency space.
Hot Take: Pump and Dump Schemes Common in the Cryptocurrency Space
Pump and dump schemes are common in assets with micro or small market capitalizations and are relatively common in the cryptocurrency space. These illegal schemes boost the value of an asset through exaggerated or false statements about it, usually with insiders buying it so its price moves in a bid to leave other investors with a “fear of missing out.”
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