A Solana trader made nearly 4,000% in profit on a memecoin investment, a new Lookonchain report shows.
In a recent report by Lookonchain, a trader in the Solana ecosystem made a staggering 4,000% unrealized gain in a five-hour trade, raising red flags for insider trading.
An initial $49,000 investment turned into a large amount of TORI, a newly launched memecoin, which is now worth about $2 million.
According to Lookonchain, the trader spent 344 SOL, worth roughly $49,000, to purchase 261.4 million TORI. The SOL was originally withdrawn in two separate Binance transactions to a new wallet address on April 25 and 26.
Notably, the trader transferred the TORI tokens to multiple addresses on April 28 — shortly after acquiring them.
This raised suspicions among analysts that insider trading may have taken place. However, the trader has yet to sell the tokens to realize the massive gains.
In the volatile cryptocurrency landscape, unrealized gains can disappear rapidly. Memecoin and low-liquidity token trading carry a high degree of risk and are not recommended for novice traders.
Therefore, we urge everyone: “Before participating in any cryptocurrency project, traders must exercise caution and thoroughly understand how liquidity conditions can impact profitability.”
