A cryptocurrency investor achieved a remarkable 2,554-fold return on a well-timed $1,300 investment in Moo Deng tokens. However, this gain has raised suspicions among some community members who suspect insider trading.
Luck or Insider Trading?
On Sept. 25, onchain analytics firm Lookonchain identified a crypto trader on the Solana blockchain who traded their way into becoming a millionaire in two weeks. Data from Solana Blockchain explorer Solscan shows that on Sept. 10, the crypto investor sold 9.8 Solana worth $1,331 to purchase 38.7 million MOODENG tokens. Over the next two weeks, the market price of the hippo-themed memecoin increased exponentially, eventually turning the initial $1,331 investment to $3.4 million. However, crypto community members noted that the MOODENG pool had a liquidity of $1.8 million, which would not allow the investor to cash out the entire investment at the current market price. The staggering price appreciation led many to suspect the involvement of insider trading.
Hodl Strategy as an Alternative to Memecoin
While some crypto investors bet on altcoins hoping for unrealistic returns, others follow the tried and tested 'hodl' strategy. One notable example is a cryptocurrency investor who made $131.72 million by investing in Ether (ETH) during the 2022 bear market and holding it through uncertain market conditions for two years. Lookonchain said the investor purchased 96,639 ETH from the Coinbase crypto exchange between Sept. 3 and 4, 2022, at the time when Ether was trading at roughly $1,567.
Similar Cases of Sudden Success
On Sept. 26, Lookonchain revealed another trader who profited over 1,000 times from a $95 altcoin investment in under 12 hours. The crypto investor purchased $95 of INCEPT tokens and turned it into $96,900 in half a day. Lookonchain also noted that most wallet addresses that recently made profits of a similar scale on INCEPT investments 'appear to be insider wallets.'
Cryptocurrency investors continue to seek quick profit opportunities, whether by adopting risky strategies of investing in newly emerged altcoins or adhering to long-term 'hodl' strategies in the hope of stable growth.
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