An anonymous user has reportedly earned nearly $1 million from the politically themed meme token MAGA. Analysts at Lookonchain have accused the trader of insider trading.
Note that an insider is selling #MEMEcoin $MAGA on #Ethereum!
The insider spent 5.35 $ETH($19,586) to buy 140.4B $MAGA(33.37% of supply) with 22 wallets.
So far, the insider has sold 79.9B $MAGA for 320 $ETH($1.05M), leaving 60.5B $MAGA, worth more than $9M!… pic.twitter.com/fe8a5yHjvs
— Lookonchain (@lookonchain) May 21, 2024
According to researchers, the investor spent 5.35 ETH ($19,586) to purchase 140.4 billion MAGA tokens, approximately 33.3% of the total supply.
Later, he sold 79.9 billion MAGA for 320 ETH ($1.05 million). The trader’s wallet still holds 60.5 billion meme coins valued at over $9 million.
However, a user known as Dominium pointed out that the transactions analyzed by Lookonchain exhibit characteristics of MEV bot operations, which exploit arbitrage opportunities for profit.
That’s MEV BOT transactions if you look at it carefully
— DOMINIUM (@RootkitAlpha) May 21, 2024
Receiving no response from the analysts, the user criticized them for inaccuracies in their research:
“So, nothing to say now? Why make a fuss about MEV bot transactions when it’s visible [in the explorer]. You call yourselves Lookonchain and don’t understand this.”
The MAGA meme token is an abbreviation of Donald Trump’s slogan: “Make America Great Again.” At the time of writing, the asset trades at $7.6, having gained 48% over the month.
The coin surged after the presidential candidate began accepting cryptocurrency donations for his campaign.
Previously, Lookonchain highlighted that a trader gained $2.5 million in unrealized profits from insider trading on the new token Minette, having invested 2.89 SOL ($445).
Back in April, ForkLog reported on a trader losing $152,000 in half an hour due to insider trading.