In the volatile world of cryptocurrencies, some believe that memecoins are the best way to make easy money. Today, August 9, 2024, on-chain analytics firm Lookonchain shared a post on X (formerly Twitter) revealing that five insider wallets made over $4 million from a newly created memecoin. Meanwhile, another trader lost nearly $1 million in the same token at the same time as the price crash.
Five Insiders Made $4 Million With New Meme Coin
According to lookonchain, after the launch of this new meme coin, these five insiders created a new wallet 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 of time, these five insider wallets made over $4.17 million.
Pump in and dump a new meme coin?
While another FOMO trader 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 almost $898,500.
It seems that these insiders have pumped up the price of meme tokens. Once traders started participating, they dumped all the tokens they had bought into open trading at a higher price.
More likely, this meme coin was created solely for the pump and dump scheme. Although lookonchain doesn’t mention it in its posts, the current situation suggests that it looks like a typical pump and dump case.
Attention traders, please
Investors and traders need to understand that memecoins are not an easy way to make money in the crypto industry. There are many blue-chip cryptocurrencies with high market caps, such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Make sure to only invest in top cryptocurrencies or in projects that involve institutions or whales like Micheal Syalor, Arthur Hayes, or Justin Sun.
Disclaimer and risk warning
The information in this content from Coinpedia Academy is for general knowledge and educational purposes only. It is not financial, professional or legal advice and does not endorse any specific product or service. The organization is not responsible for any losses you may experience. Also, Creators own the copyright for images and videos used. If you find any of the published content inappropriate, please feel free to inform us.
