Meme coin pump and dump? Insiders get $4m, trader loses $1m
In the dynamic world of cryptocurrencies, some believe meme coins are the best way to make easy money. Today, August 9, 2024, on-chain analytics firm Lookonchain shared a post on X (formerly Twitter) revealing that five insider wallets have raised more than $4 million from the newly created Mame coin. Meanwhile, another trader lost nearly $1 million in the same price drop.
Five insiders have earned $4 million in new meme coins
According to lookonchain, these five insiders created a new wallet and withdrew their funds from Coinbase and Bybit following the launch of the new meme coin.
After creating the wallets, these insiders spent 5,580 Solana (SOL) $882,000 to buy 104.64 million RTR meme coins in open trading. They then sold 92.77 million RTR coins for 31,994 SOL for $5.05 million. In a short period of time, these five insiders have earned more than $4.17 million.
Blow and toss in a new meme coin?
However, another trader in FOMO lost 5,687 SOL worth $898,500 per meme coin in 4 hours, just like Lookonchain shared. According to reports, this trader spent 5,800 SOL worth 916,400 to buy 7.2 million RTR meme coins at a high price and sold them all for only 113.3 SOL for $18,000. This resulted in a loss of approximately $898,500.
These insiders seem to have priced out the meme token, and after traders started participating, they dumped all the tokens they bought in the open market.
It is highly likely that this Mem coin was created solely for the purpose of pumping and removing waste. Lookonchain doesn't mention this in the articles, but suggests that the current situation resembles a typical pump-and-dump case.
Please pay attention to traders
Investors and traders should understand that meme coins are not an easy way to make money in the crypto industry. There are many blue-chip cryptocurrencies with high market capitalization such as Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). Be sure to invest in top cryptocurrencies or projects involving whales or institutions like Michael Salor, Arthur Hayes or Justin Sun.
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