An unidentified individual, referred to as an “insider,” has reportedly been selling off a large amount of the political-themed cryptocurrency, MAGA. According to blockchain analysis account Lookonchain, this insider sold nearly 80 billion MAGA tokens for 320 Ether (ETH), which is equivalent to $1.05 million.
The alleged insider initially purchased 140.4 billion MAGA tokens, which accounted for 33.37% of the total supply, across 22 wallets. They acquired these tokens for just 5.35 ETH, which was worth approximately $20,000. Despite the recent sales, the insider still holds around 60 billion MAGA tokens, valued at over $9 million.
However, new information suggests that these transactions may not be the result of insider trading but rather the activity of a maximal extractable value (MEV) bot. A user named “Dominium” pointed out that the transactions displayed characteristics of MEV bot operations, which exploit arbitrage opportunities to generate significant profits from MAGA tokens.
Cointelegraph reached out to Lookonchain and Dominium for comment but did not receive a response by the time of publication. In response to the allegations of MEV bot involvement, Dominium confronted Lookonchain and provided additional images that offered a more detailed breakdown of the transactions.
As a result of the initial post by Dominium, Lookonchain faced significant backlash from the community. Many users questioned the credibility of the blockchain analysis account, leading to doubts about the insider trading allegations and sparking debates about market manipulation.
MAGA is a memecoin that stands for former US President Donald Trump’s slogan, “Make America Great Again.” The token experienced a recent price rally after Trump made favorable comments about cryptocurrencies, including the possibility of accepting crypto donations for political campaigns. However, it is important to note that memecoins, including MAGA, are highly volatile and carry significant risks.
In recent news related to memecoins, the memecoin creation platform Pump.fun suffered an exploit worth $1.9 million. The individual responsible for the exploit claims to have been arrested and is currently out on bail in the United Kingdom.
Magazine: Asia Express