An investor with substantial experience has managed to secure $2.7 million in a mere three days from the Donald Trump-themed MAGA (TRUMP) memecoin project. This investor, identified by the wallet address 0x303, invested over $535,000 on May 25 to acquire six billion MAGA tokens, earning a return of over 505 times his original investment. This information was shared by Lookonchain in a post on May 27.
What Prompted the MAGA Token Surge?
The investor’s wallet is exclusively filled with MAGA tokens, which have appreciated by more than 82% in the last 24 hours. CoinStats data reveals that the wallet’s value is now over $2.2 million, down from more than $4 million only a few hours earlier. The significant increase in the MAGA token’s value followed remarks from Republican presidential candidate Donald Trump supporting cryptocurrencies.
On May 9, MAGA experienced a single-day surge of over 78% after Trump expressed his pro-crypto views, causing the trading volume to jump by more than 62% to $281 million. Trump stated, “I am fine with the crypto sector. I want to ensure it is good and solid. If you support crypto, you should vote for Trump.”
Is Insider Trading Involved?
The investor’s impressive $2.7 million gain has sparked insider trading allegations on X. Datawallet’s comment on Lookonchain’s post read, “No one spends $500,000 on a memecoin without extra information.” Last week, Lookonchain mentioned an insider who allegedly sold MAGA tokens after purchasing 33% of the supply with 5.35 Ethereum using 22 different wallets.
X user Dominium suggested that the transactions could actually be the work of maximum extractable value (MEV) bots exploiting arbitrage opportunities to generate significant profits, rather than insider trading. Other users also questioned Lookonchain’s claims, proposing the possibility that the individual behind the transactions was simply an MEV bot operator.
Key Takeaways for Investors
- MAGA tokens saw an 82% increase in value within 24 hours.
- $2.7 million profit was made from an initial $535,000 investment.
- Insider trading allegations have been raised.
- MEV bots could be responsible for significant trading activities.
- Memecoins remain highly volatile and risky investments.
Conclusion
Regardless of whether insider trading was involved, the dramatic rise in MAGA’s value demonstrates the inherent volatility and risks associated with memecoins. Investors should be cautious, as the potential for substantial gains is coupled with significant risks, highlighted by cases where substantial losses were incurred, such as the Normie memecoin investor who lost over $1 million.