In the volatile world of cryptocurrencies, some believe meme coins are the best way to make easy money. Today on August 9, 2024, an on-chain analytic firm Lookonchain shared a post on X (previously Twitter) revealing that five insider wallets have made over $4 million from a newly created meme coin. Meanwhile, another trader lost nearly $1 million at the same time in the same token as its price crash.
Five insiders made $4 million with new meme coin
According to lookonchain, these five insiders created a new wallet following the launch of this new meme coin and withdrew funds from Coinbase and Bybit.
After creating the wallets, these insiders spent 5,580 Solana (SOL) worth $882,000 to buy 104.64 million RTR meme coins in open trading. They then sold 92.77 million RTR coins for 31,994 SOL worth $5.05 million. In a short period, these five insider wallets made over $4.17 million.
Pump and dump in a new meme coin?
Whereas, another trader in FOMO lost 5,687 SOL worth $898,500 in the same meme coin in just 4 hours, as shared by Lookonchain. According to the report, this trader spent 5,800 SOL worth $916,400 to buy 7.2 million RTR meme coins at the highest price and sold them all for just 113.3 SOL worth $18,000, as the price crashed. This resulted in a loss of nearly $898,500.
It looks like these insiders pumped the price of meme tokens, and once traders began participating they dumped all the tokens they had bought in open trading at a higher price.
More likely, there is a high possibility that this meme coin was created solely for the pump and dump scheme. While lookonchain does not mention this in his posts, the current situation suggests it resembles a typical pump-and-dump case.
Traders attention, please
Investors and traders need to understand that meme coins are not an easy way to make money in the crypto industry. There are many blue-chip cryptocurrencies are there with high market cap such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Make sure to invest only in top cryptocurrencies or in projects where institutions or whales like Micheal Syalor, Arthur Hayes, or Justin Sun are involved.
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