A trader, identified by the wallet “0x303,” achieved a $2.7 million profit within three days by trading the Trump-themed MAGA (TRUMP) meme token. This significant profit was obtained from an initial investment of $535,000 used to purchase six billion MAGA tokens on May 25, yielding an over 505-fold return.
Shortly after buying them, the trader sold 1.5 billion MAGA tokens for $744,000, but he kept 4.5 billion tokens for $2.51 million. Donald Trump, the Republican nominee for president, made positive remarks about cryptocurrencies, which contributed to the token’s sharp rise in value.
Following Trump’s pro-crypto remarks, the MAGA token surged over 78% intraday on May 9, with trading volume escalating to $281 million. The trader’s wallet, composed entirely of MAGA tokens, witnessed a substantial rise in value, peaking at over $4 million.
Allegations of Insider Trading
The trader’s profit has led to insider trading allegations, with some suggesting the transactions might involve maximal extractable value (MEV) bot activity rather than insider knowledge.
Despite the controversy, the incident highlights the volatile nature of memecoins and the substantial risks involved. Trump’s pro-crypto stance was a significant factor in this increase. He emphasized his support for cryptocurrency, urging those in favor to vote for him.
Also Read: MEV Bots Linked to $1.05 Million MAGA Token Transactions
