Trader makes $2.7M profit in 3 days on Trump-themed MAGA memecoin
A savvy trader made a $2.7 million profit in three days on the Donald Trump-themed MAGA (TRUMP) meme token.
Memecoin merchant wallet “0x303” spent more than $535,000 to buy six billion MAGA tokens on May 25, returning more than 505 times his initial investment, X posted on Lookonchain on May 27.
“He spent $537.5K to buy 6B $MAGA on May 24th and May 25th, then sold 1.5B $MAGA for 744K $USDT to make a profit 10 minutes ago. He currently holds 4.5B $MAGA, worth $2.51M.”
The savvy trader's wallet is made up entirely of MAGA tokens, which are up over 82% in the last 24 hours. The wallet is currently worth more than $2.2 million, and was worth more than $4 million a few hours ago around 7:00 am UTC, CoinStats data shows.
The MAGA token has seen a significant increase following comments related to digital assets by Republican presidential candidate Donald Trump.
On May 9, MAGA surged more than 78% intraday, with trading volume rising more than 62% to $281 million, following Trump's comments on his crypto stance.
“i am fine. I want to make sure it's good and strong and everything. But I'm good. And if you like crypto in any form (and it comes in many forms), you better vote for Trump if you support crypto.
RELATED: Trader Turns $2.2K SOL Into $2.26M in New Memecoin in 8 Hours
MAGA memecoin pump: insider trading or MEV bot activity?
The savvy trader's $2.7 million profit sparked widespread insider trading allegations against X, Datawallet commented on Loonchain's post:
No one spends $500k on Memcoin without some ‘extra' knowledge.
Last week, Lookonchain claimed that “an insider is selling” MAGA memecoins. This insider previously spent 5.35 Ether (ETH) to purchase 33% of MAGA's supply using 22 different wallets.
However, the trades may be the result of maximum extractable value (MEV) bot activity – using arbitrage opportunities to generate significant MAGA profit margins rather than “insider” trading, according to Anonymous X user Domain.
If you look carefully, they are MEV bot transactions
Many other users have questioned the veracity of Loonchain's claims, suggesting that the so-called insider is just an MEV bot.
Whether the MAGA pump is insider driven or not, memecoins still have high risk and price volatility. One unlucky memecoin trader lost over a million dollars following the Normie memecoin exploit, resulting in a loss of over 99% on his initial $1.16 million investment.
Magazine: Trader Turns $3K to $46M in PEPE, Ethereum Gas Shift, Tornado dev Guilty: Hodler Digest, May 12-18
