A cryptocurrency trader made a windfall profit on a little-known memecoin after purchasing over 256 million tokens of the Solana-based memecoin CTO for am ere $8,500 shortly after the token started trading on decentralized exchange Raydium.
According to data shared by on-chain analysis service Lookonchain, the trader was the third address to acquire CTO tokens right after they started trading on the exchange and within an hour, they sold their considerable holdings to net little over $800,000 and secure a gain of 94x.
In total, the trader spent 50 Solana (SOL) tokens worth around $8,500 to buy 256.8 million CTO, and then sold 227.67 million CTO for 4,771 SOL tokens. The trader notably also made over $100,000 with another newly launched cryptocurrency earlier.
The trader’s success has sparked speculation within the cryptocurrency community. Some believe they were simply a skilled “memecoin hunter,” capitalizing on the fleeting popularity of token launches on the Solana network, while others suspect insider knowledge may have played a role, given the early timing of the purchase.
As reported, earlier this year an insider trader managed to turn just 0.34 ETH tokens, worth $878, into around $550,000 in just a couple of hours after trading a newly launched memecoin, with data from the blockchain suggesting the trader is the developer behind it.
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, worth nearly $500,000. Both the insider and the deployer behind the cryptocurrency seemingly used the same wallet address to transfer tokens to, suggesting that the insider is the deployer.
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