Crypto trader realizes profits of over $1.68 million within 15 days by trading with insider information in the Solana (SOL) ecosystem.
This trader invested 23 SOL, worth around $3,300, in two meme coins and sold them for 11,229 SOL, worth over $1.69 million.
Details of the transactions:
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 (around $974,200), achieving a 810x return.
GUNIT
Initial investment:
16 SOL (around $2,100) were spent to acquire 366.92 million GUNIT tokens.
Profit:
Sold after eight hours for 5,475.5 SOL (around $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 in Kraken, likely to convert them into fiat.
Risks and ethical concerns:
This case highlights the issues related to insider trading and speculative investments in meme cryptocurrencies:
Informational advantage:
Individuals with insider information can use early or confidential information, creating an unfair market.
Market manipulation:
Quick profits suggest market manipulation and liquidity.
While profits from trading with insider information are impressive, they underscore the potential risks and ethical problems within the crypto market. Investors should approach such opportunities with caution and focus on fundamentally justified investments.