Solana’s Focai memecoin startup’s suspected insider bags $20M
At least 15 blockchain wallets suspected of insider trading turned an initial $14,600 investment into $20 million, raising concerns about transparency and fairness in cryptocurrency markets.
The 15 insider wallets have made more than $20 million in profits on Focai.fun (FOCAI), a memecoin recently launched on Solana's (SOL) memecoin startup pumppad pump.fun.
The suspects made more than 136,000 times their initial investment of $14,600, which bought them more than 60.5% of the total token supply, according to onchain analytics firm Lookonchain. “They then sold all Fokai for $94,175 SOL($20.5M), netting $94,108 SOL($20.48M).”
FOCAI inner bags. Source: Lookonchain
The concentration of such a large share of tokens in small wallets has led to criticism by blockchain analysts. The situation highlights the potential dangers of decentralization, a key principle in cryptocurrency.
FOCAI/USD, all-time chart, market price. Source: Pump.fun
The FOCAI token rose to over $46 million in market capitalization at 4:45 am UTC. The token's market capitalization fell 14 percent to $39.6 million as of 11:55 UTC, according to Pump.fun data.
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One wallet received about 3.5 million dollars in three hours
Among the 15 wallets, one particularly profitable address, the tag “9DtTb,” earned $3.47 million in three hours. Onchain Lens, a blockchain analytics platform, detailed the transaction.
“The insider bought 123.32M $FOCAI for 5.39 SOL ($1,168) on Pump.Fun. The insider sold the entire $FOCAI for 16,070 SOL for $3.47M. The insider made x2973 profit.”
Focai insider wallet “9DtTb” selling patterns. Source: Onchain Lens
Despite their inherent lack of utility, memecoins can be profitable investments for a small percentage of traders. In December, a savvy crypto trader turned $27 into $52 million after posting more than 1.9 million times his initial investment in the PEPE token.
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More than 99% of Pamp.fun merchants are not profitable
However, most memecoin traders remain unprofitable.
Over 99% of traders on Pamp.fun have lost money or made less than $1,000 in profit.
Out of a total of 9.8 million wallets, only about 50 made returns of up to $1,000, and five wallets earned between $1,000 and $10,000.
Wallet distribution with profits on Pump.fun. Source: Dunn
A single wallet has generated more than $10,000 in profit, according to Dunn's data.
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