In just three days, a clever trader managed to make a staggering profit of $2.7 million by investing in the MAGA (TRUMP) meme token, which is based on Donald Trump. Going by the name “0x303,” this trader spent a whopping $535,000 to purchase six billion MAGA tokens on May 25. According to a post by Lookonchain on May 27, this investment yielded a return over 505 times the initial amount.
The trader’s wallet consists solely of MAGA tokens, which have experienced an impressive 82% increase in value within the past 24 hours. At present, the wallet is worth over $2.2 million, having been valued at over $4 million just a few hours earlier, around 7:00 am UTC, as per CoinStats data.
The MAGA token has seen significant surges in response to comments made by Republican presidential candidate Donald Trump regarding digital assets. On May 9, following Trump’s pro-crypto stance, MAGA witnessed an intraday surge of over 78%, with trading volume rising by more than 62% to reach $281 million.
The trader’s remarkable $2.7 million profit has led to widespread allegations of insider trading on X. In response to Lookonchain’s post, Datawallet commented on the matter. Last week, Lookonchain had pointed out that an insider was selling MAGA memecoins. This insider had previously used 5.35 Ether (ETH) to acquire 33% of the MAGA supply through 22 different wallets.
However, it is possible that these transactions are a result of maximal extractable value (MEV) bot activity, which involves capitalizing on arbitrage opportunities to generate substantial profits from MAGA, rather than being classified as “insider” trading. This theory was put forth by pseudonymous X user Dominium. Many other users have also questioned the accuracy of Lookonchain’s claims, suggesting that the alleged insider is simply an MEV bot.
Regardless of whether the MAGA pump was driven by insiders or not, it is important to note that memecoins still carry significant risks and price volatility. In a unfortunate turn of events, a memecoin trader lost over $1 million due to the Normie memecoin exploit, resulting in a loss of over 99% on their initial investment of $1.16 million.
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In other news, a trader managed to turn a mere $3,000 into a staggering $46 million through investments in PEPE. Additionally, there have been updates on Ethereum’s gas overhaul and the conviction of a Tornado dev. This information can be found in the latest edition of Hodler’s Digest, covering the period from May 12-18.