A crypto insider made over $1.68 million of realized profits in 15 days, trading in the Solana (SOL) ecosystem. The cryptocurrency trader spent 23 SOL, worth $3,300, to buy two meme coins and sold all his positions for 11,229 SOL, valued at above $1.69 million.

Notably, Lookonchain classified this trader as a crypto insider, considering the purchases were immediately after the tokens’ liquidity pools launch. The platform reported this recent accomplishment in a post on X on June 22, tracking on-chain data from multiple addresses. 

How did the crypto insider make over $1.68 million in profits trading two meme coins on Solana?

Overall, this crypto insider used 7.1 SOL and 16 SOL to buy HULK and GUNIT, respectively. 

First, multiple addresses acquired 190.2 million HULK with $1,200 worth of Solana and held them through 15 days. These addresses sold the entire position for 5,760.7 SOL, worth $974,200—an 810x gain over the initial investment.

For GUNIT, the insider spent 16 SOL, worth $2,100, to buy 366.92 million of the crypto. Eight hours later, the meme coin token experienced a massive surge, and the trader sold all his stack. This trade resulted in 5,475.5 SOL, worth $719,800, for a 343x increase in his holdings.

Later, the insider consolidated his profits in the crypto wallet address ‘4uh969’. From the now-acquired 11,229 SOL, the address sent 3,070 SOL to a Kraken address, likely to realize this profit in fiat.

The dangers of insiders and crypto traders speculating on meme coins

This is another example of how crypto insiders often take advantage of retail by creating and launching meme coins and money-grab schemes. They benefit from information asymmetry and the hype of a market that insists on gambling with poor fundamental digital assets.

This mentality aligns with the “Greater Fool Theory,” which suggests that profits can be made by buying overvalued assets and selling them to a “greater fool.”

Cryptocurrencies are inherently volatile and present considerable risks for traders, investors, and users, even with solid and usable projects. However, trading meme coins adds another layer of risks that will often drain money from many to a few insiders.

For this reason, investors should avoid these schemes and look for a cryptocurrency‘s fundamentals, cautiously researching supply and demand properties. Recent data reported by Finbold suggests the trend is shifting away from meme coins and into better-fundamented projects.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.