Trader Rakes in $8.9 Million Profit Trading Shroom Memecoin in One Hour
In a stunning turn of events, an unidentified trader managed to make an astonishing $8.9 million in profit in less than sixty minutes by trading the Shroom memecoin. This lucrative transaction took place during the same block where developers injected liquidity into the cryptocurrency, as revealed by on-chain data.
According to a post by Lookonchain, the trader used 6,000 SOL tokens, which were valued at $1.04 million, to purchase Shroom coins. After just one hour, the trader sold their investment for a whopping 57,112 SOL, equivalent to $9.93 million. The staggering profit made by the trader showcases the immense potential and volatility of the digital asset market.
The Shroom token, which was launched on Raydium on March 20, is a memecoin with a mushroom theme. However, it lacks any intrinsic value or utility. Unfortunately, the token’s price has plummeted by over 70% since its launch. Currently, it holds a market capitalization of $11.88 million, according to GeckoTerminal.
The fortuitous timing of the profitable trade has sparked allegations of insider trading within the crypto community. Blockchain Maxi, an X user, expressed suspicions, stating, “That’s dev himself.” Another pseudonymous trader, Bull.Bnb, echoed these sentiments by suggesting the involvement of the token’s developer.
The Shroom memecoin gained significant attention following the announcement of a surprise airdrop by Trippy Labs. This news generated over 268,000 views on March 20 alone. The memecoin frenzy continues to captivate retail investors, as evidenced by the success of the recently launched meme token, Book Of Meme (BOME). BOME has seen a staggering 1,100% increase on the weekly chart and currently ranks as the 130th-largest token, with a market capitalization of $617 million, according to CoinMarketCap.
It is worth noting that the Book of Meme token is part of a series of new memecoins that raised funds through a controversial presale model. These Solana-based memecoins managed to accumulate over $100 million worth of SOL in the three days leading up to March 18.
As always, it is essential to remember that this article does not offer investment advice or recommendations. Engaging in any investment or trading activity carries inherent risks, and readers should conduct thorough research before making any decisions.