Lookonchain: Anonymous trader multiplied 1025 times by buying “this coin”
On-chain analyst Lookonchain pointed out on Monday (21st) that after an anonymous trader purchased the meme currency $GUMMY on the Solana chain, the principal increased from US$9,770 to 10 million in just one day. USD, which equals 1,025 times the reward.
But Lookonchain also discovered that the trader transferred 65.23 Solana ($SOL) from the centralized exchange 12 minutes before $GUMMY was deployed. He spent 64.5 $SOL (worth $9,769 at the time) to purchase 97.36 million $GUMMY in the block where the deployer added liquidity.
He then transferred these $GUMMY to 10 new wallet addresses. As of around 12:00 p.m. on April 21, none of them had been sold, and his position value was $10 million.
However, after checking the Solana wallet address information provided by Lookonchain today, it can be found that the trader has basically liquidated his profits, leaving only about 88,000 $GUMMY.
Is it a sniper or an insider?
The ability to transfer assets in advance before $GUMMY is deployed, and the ability to purchase in blocks that add liquidity, makes Lookonchain question: "Is this a sniper or an insider?"
In foreign currency circles, Sniper usually refers to users who use automated tools such as Sniper Bot to trade. Sniper robots can usually be set to trade quickly in predetermined market conditions. Through preset parameters, they can enter and exit the market under favorable conditions.
In the on-chain market where everyone can issue coins, there is also a technique called "token sniping scams". Developers can act like they are issuing tokens normally and attract investors. Liquidity can then be suddenly withdrawn or the token sold, causing the token to plummet and investors to suffer losses.
In the comments section of X (original Twitter), many netizens believe that there is a high probability that insiders are buying coins:
According to the cryptocurrency ranking website CoinGecko, $GUMMY is quoted at $0.1942 at the time of writing, with a low total market capitalization and trading volume. In addition, while $GUMMY is currently trading at a 45% intraday gain, yesterday it fell from a high of 0.2277 to a low of 0.1270, resulting in a 44% drop, which was very volatile.
There are many stories of people getting rich by buying meme coins on the chain, but it may be insiders buying and selling them.
This kind of story of getting rich quickly by buying meme coins on the chain happens almost every day. Sometimes it’s smart traders who successfully snipe potential projects, and other times it’s malicious speculators looking to make a quick profit on meme coins.
Foreign media "Cointelegraph" once reported that an anonymous trader made $6 million in one day after buying the frog meme coin Apu Apustaja ($APU); another trader bought Donotfomoew ($MOEW) , and earned US$2 million in revenue within an hour, but some netizens also questioned that it was simply insiders who secretly bought and sold the coins after issuing them.
Since last year, there has been no shortage of popular meme coins in the market. Pepe's Frog ($PEPE), $BONK, etc., which were previously reported, have all generated huge returns in the short term. However, investors should note that these meme coins are usually worthless, their team members and development routes are unknown, and they rely solely on community voice to survive. If you want to invest money, you must realize that meme coins have huge risks and the team has a high probability of running away.
This article is reproduced with permission from: CryptoCity
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