In the wild world of memecoins, fortunes can be made and lost in the blink of an eye. One savvy trader, known only by their wallet address “0x303,” recently demonstrated the potential for massive gains in this volatile market by turning a $535,000 investment in the Donald Trump-themed MAGA (TRUMP) memecoin into a staggering $2.7 million profit in just three days.
According to a post on X (formerly Twitter) by blockchain analytics service Lookonchain, the trader purchased six billion MAGA tokens on May 25, spending a total of $537,500. Just ten minutes after the initial investment, the trader sold 1.5 billion MAGA tokens for $744,000 in USDT, realizing a significant profit. As of the time of the post, the trader held 4.5 billion MAGA tokens, worth an estimated $2.51 million.
In just 3 days, this trader made $2.7M by trading $MAGA, with an ROI of 505%!He spent $537.5K to buy 6B $MAGA on May 24 and May 25, then sold 1.5B $MAGA for 744K $USDT to take profits 10 minutes ago.He currently holds 4.5B $MAGA, worth $2.51M.https://t.co/KaRYLuELKN pic.twitter.com/Pgd5hKVpc5
— Lookonchain (@lookonchain) May 27, 2024
The MAGA token, which has seen significant price surges following comments by Republican presidential candidate Donald Trump, has been a topic of much discussion in the crypto community. On May 9, the token experienced a 78% intraday surge, with trading volume rising over 62% to $281 million, after Trump expressed his support for cryptocurrencies during a special event for Trump NFT holders at his Mar-a-Lago resort in Florida.
i asked donald trump how he’s going to keep crypto businesses in america.sounds bullish 🇺🇸 pic.twitter.com/rvuztPmQ8P
— Malcolm (33.3%) (@macdegods) May 9, 2024
During the event, Trump took questions from the crypto-savvy crowd and expressed his willingness to accept campaign donations in Bitcoin and other tokens. He also criticized the current administration, claiming President Biden and U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler are ignorant and hostile towards crypto.
BREAKING: DONALD TRUMP IS FINE WITH CRYPTO pic.twitter.com/SCJDKdHQUB
— Frank (@frankdegods) May 9, 2024
While the MAGA trader’s impressive gains have generated excitement, they have also raised suspicions of insider trading. Many users on X have questioned how someone could confidently invest such a large sum in a memecoin without possessing “extra” knowledge. Lookonchain itself noted last week that “an insider is selling” MAGA memecoins, with the insider having previously spent 5.35 Ether to purchase 33% of the MAGA supply using 22 different wallets.
However, some users have suggested that the transactions may be the result of maximal extractable value (MEV) bot activity rather than insider trading. MEV bots exploit arbitrage opportunities to generate significant profits, and their activity could explain the seemingly prescient trades.