Memecoin Trader Nets 8.9M Dollars in One Hour Amid Insider Trading Allegations

Crypto News– According to on-chain data, an unidentified trader managed to accrue a staggering $8.9 million profit in under an hour through trading activities involving the Shroom memecoin. Notably, this significant profit was realized during the exact block in which developers injected liquidity into the token.

Memecoin Trader Nets 8.9M Dollars in One Hour Amid Insider Trading Allegations

The timing of this transaction, juxtaposed with the liquidity addition, has raised eyebrows and led to speculation regarding potential insider knowledge or advantageous positioning within the market.

Trader Rakes in 8.9 Million Dollars Profit from Shroom Memecoin

In a single block where the token contract deployer injected new liquidity, a trader bought tokens worth $1.04 million in Shroom coins. Just an hour later, they sold for 57,112 SOL worth $9.93 million, as reported by on-chain analytics firm Lookonchain on March 20.

Unbelievable!😱

This guy made 51,112 $SOL($8.9M) in less than 1 hour!

He spent 6K $SOL($1.04M) to buy 292.16M $SHROOM in the same block where #Shroom deployer added liquidity.

Then sold it for 57,112 $SOL($9.93M) within an hour.

Made 51,112 $SOL($8.9M) in less than 1 hour!… pic.twitter.com/IHzLVdX8rZ

— Lookonchain (@lookonchain) March 20, 2024

Shroom token, launched on Raydium, is a mushroom-themed memecoin lacking underlying utility or intrinsic value. Since its inception, the token’s price has plummeted by over 70%, currently reflecting a market cap of $11.88 million, according to Geckoterminal.

The timing of this lucrative trade sparked allegations of insider trading within the crypto community. In response to Lookonchain’s findings, one user, Blockchain Maxi, stated, “It’s called Insider Trading. You can never win with new memes, don’t even try.” Another pseudonymous trader, Bull.Bnb, speculated, “That’s dev himself,” in reaction to the same post.

Interest in the Solana-based memecoin surged after Trippy Labs announced a surprise Shroom airdrop, garnering over 268,000 views in 12 hours, as reported on March 20.