A cryptocurrency trader made over $150,000 in profit within 1.68 days trading insider information in the Solana (SOL) ecosystem.
The trader invested 23 SOL, worth approximately $3,300, to purchase two Meme coins and sold them at a price of 11,229 SOL, valued at over $16,900.
Trade details:
HULK
Initial investment:
7.1 SOL (approximately $1,200) used to purchase 19.02 billion HULK tokens.
Profit:
Held for 15 days and sold for 5,760.7 SOL (approximately $974,200), realizing an 810x return.
GUNIT
Initial investment:
Spent 16 SOL (approximately $2,100) to purchase 36.692 billion GUNIT tokens.
Profit:
Sold at a price of 5,475/5 SOL (approximately $719,800) after eight hours, resulting in a 343x return.
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The trader consolidated these profits into a wallet with the address “4uh969” and transferred 3,070 SOL to a Kraken address, presumably to convert it into fiat currency.
Risks and ethical issues:
This case highlights the issues surrounding insider trading and speculative investments in meme cryptocurrencies:
Information advantage:
Insiders can use early or confidential information, leading to an unfair market.
Market manipulation:
Quick profits can mean manipulation of market dynamics and liquidity.
While the profits from insider trading are impressive, they also highlight the potential risks and ethical issues within the cryptocurrency market. Investors should approach such opportunities with caution and focus on fundamentally sound investments.
