Memecoin trader makes $8.9M profit in one hour, sparking ‘insider’ allegations
Unknown trader Shroom (SHROOM) made a profit of $8.9 million in less than an hour trading memecoin.
Related: Unnamed Presale Address Raises $33M SOL in One Hour
Trader makes $8.9M profit on Shroom memecoin
The wallet issued 6,000 Solana (SOL) tokens worth $1.04 million on Shroom coins, in the same block where the token contract issuer added new liquidity. An hour later, the trader sold 57,112 SOL at a price of 9.93 million dollars, posted on March 20 X by on-chain analytics company Lookonchain.
The Shroom token launched on Radium on March 20 as a mushroom-themed memecoin with no underlying utility or intrinsic value. The token's price has fallen more than 70 percent since its launch, and currently sits at a market cap of $11.88 million, Geckoterminal reports.
The special trading period has led to accusations of “insider trading” among the crypto community. In response to Loonchain's post, X user Blockchain Maxi wrote:
“It's called insider trading. You can never win with a new memory, don't even try.”
“That's Dave himself,” wrote an anonymous trader on Bull.Bnb who responded to the same post.
Solana-based memecoin started generating interest after Trippy Labs announced a surprise Shroom airdrop on a March 20 X post that garnered more than 268,000 views in 16 hours.
The Memecoin frenzy continues.
Memecoins continue to attract retail interest. The recently launched meme token Book of Memes (BOME) is up more than 1,100% on the weekly chart, making it the 130th largest token with a capitalization of $617 million, according to CoinMarketCap data.
The Meme Token is part of a series of new memecoins that have raised funds for unreleased coins through a controversial presale model. The sale of these Solana-based memecoins raised more than $100 million in value in the three days until March 18.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
