An unknown trader made $8.9 million in profit in less than one hour by trading the Shroom (SHROOM) memecoin during the same block where developers added liquidity, on-chain data shows.

Related: Unnamed presale address amasses $33M SOL in an hour

Trader makes $8.9M profit on Shroom memecoin

The wallet spent 6,000 Solana (SOL) tokens worth $1.04 million on Shroom coins, in the same block where the token contract deployer added new liquidity. After an hour, the trader sold for 57,112 SOL worth $9.93 million, according to a March 20 X post by on-chain analytics firm Lookonchain.

The Shroom token was launched on Raydium on March 20 as a mushroom-themed memecoin with no underlying utility or intrinsic value. The token’s price has fallen over 70% since launch, and it currently sits at a market cap of $11.88 million, according to Geckoterminal.

SHROOM/SOL, all-time chart. Source: Geckoterminal

The peculiar timing of the profitable trade caused "insider trading" allegations among the crypto community. In response to Lookonchain’s post, X user Blockchain Maxi wrote:

“It's called Insider Trading. You can never win with new memes, don't even try.”

“That's dev himself,” Wrote pseudonymous trader Bull.Bnb, in response to the same post.

The Solana-based memecoin started generating interest after Trippy Labs announced a surprise Shroom airdrop in a March 20 X post that amassed over 268,000 views in 16 hours.

Memecoin frenzy continues

Memecoins continue attracting retail interest. Recently launched meme token Book Of Meme (BOME) is up over 1,100% on the weekly chart, as the 130th largest token with a market capitalization of $617 million, according to CoinMarketCap data.

BOME/USDT, 7-day chart. Source: CoinMarketCap

The Book of Meme token is part of a series of new memecoins that raised money for unreleased coins by way of a controversial presale model. Presales for these Solana-based memecoins raised over $100 million worth of SOL in the three days leading up to March 18.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.