Trader made $86 million in 3 days by buying $MAGA Trump meme coin
The 2024 US presidential election will be held in November! During this election, Trump’s political views on the cryptocurrency industry have attracted much attention from the industry, and related meme coins have also skyrocketed. Some keen investors are making large profits by trading related currencies.
On-chain analyst Lookonchain pointed out yesterday (27th) that a trader with a wallet address starting with 0x303 spent US$537,500 (NT$17.28 million) on May 24th and 25th, US time, to purchase 6 billion $MAGA ( Unofficial Trump Meme Coin) and sold 1.5 billion of them yesterday, earning $744,000.
As of the afternoon of May 27, he still held 4.5 billion $MAGA, which was then worth $2.51 million. If the realized gains of US$744,000 are added and the costs of US$537,500 are deducted, the trader's total profit (realized + unrealized gains) is currently approximately US$2.7 million (NT$86.8 million), with a return rate of 505%.
CryptoCity looked at the on-chain data and found that as of writing today (28th), the trader had not sold the remaining $MAGA. However, due to price changes, the value of its approximately 4.5 billion $MAGA holdings has declined slightly to $2.33 million.
Image source: Etherscan
What is $MAGA? Why is it related to Trump?
The word MAGA comes from the abbreviation of Trump's famous saying: "Make America Great Again". Currently, there are many meme coins with MAGA as the theme on the blockchain, in addition to MAGA ($MAGA) , and MAGA ($TRUMP), which was released relatively early.
Etherscan blockchain browser data shows that the total supply of MAGA ($MAGA) is 420.6 billion, and the current market value on the chain is approximately $218 million, with 13,304 holders.
Image source: Etherscan
The "water is deep" behind the meme coin's sudden wealth, so don't invest impulsively
Since everyone can easily issue coins on the chain, and crypto wallets do not require identity verification (KYC) to be established, many netizens suspected that it was insider trading when dealing with the news that a certain wallet made a fortune by buying meme coins. or token issuers manipulating the market.
For example, below the Lookonchain post, some netizens questioned:
"No one is going to spend $500,000 on a meme coin without 'additional intelligence.'"
However, some netizens believe that due to the current events of the US election and the fact that Trump has recently continued to express support for cryptocurrencies, it is not surprising that traders will take a gamble on meme coins.
According to a report by currency circle foreign media "Cointelegraph", last week Lookonchain pointed out that wallets monitored as insiders of the $MAGA team were selling intensively. They established 22 wallets and spent 5.35 Ethereum coins ($ETH) to purchase 140.4 billion Ethereum coins. $MAGA, accounting for 33.37% of the total supply.
Lookonchain claims that as of May 21, insiders have sold 79.9 billion $MAGA at a price of 320 $ETH, leaving the remaining 60.5 billion $MAGA worth more than $9 million.
Image source: X/Lookonchain
However, netizen Dominium refuted Lookonchain’s view and believed that the so-called insider was just a MEV Bot. This bot took advantage of $MAGA’s arbitrage opportunities to generate significant profits and was not an insider trader.
MEV means miners can extract value, and the MEV robot is an automatic trading robot that mainly uses the transaction sequence controlled by the miner to automatically identify and execute transactions that maximize profits in the context of the miner's behavior.
MEV robots have many uses, including basic transaction monitoring, front-running, etc., as well as advanced sandwich attacks, arbitrage trading, flash loan attacks, manipulation of smart contracts, etc.
However, regardless of the truth behind it, there is no doubt that meme coins are high-risk.
"Crypto City" previously reported that in the past few months, the cryptocurrency market has seen an unprecedented trend of fanatical speculation. In April alone, there were more than 1 million new meme coins on the market, but what lies behind it Pump and dump and rug pull scams are also emerging one after another.
Even though meme coins have a chance of making a lot of profits, the investment risk is as high as "gambling". If you do not have psychological preparation and risk management for this, you may invest money that will affect your life, and you may lose more than you gain.
Is the market going crazy? The number of new meme coins in April "exceeded 1 million". What risks should you pay attention to when entering the market?
[Disclaimer] There are risks in the market, so investment needs to be cautious. The content of this article is for reference only. There are great risks in participating in meme currency investment, and the funds may be lost to zero. Users should refer to more diverse indicators to judge whether to invest and consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
