According to blockchain analysis account Lookonchain, an individual known as an “insider” has been selling off the politically themed memecoin called MAGA. This insider has sold nearly 80 billion tokens for 320 Ether (ETH), which is equivalent to $1.05 million.
The alleged insider initially purchased 140.4 billion MAGA tokens, which accounted for 33.37% of the total supply. They used 22 wallets and paid only 5.35 ETH, equivalent to around $20,000. Despite the recent sales, the alleged insider still holds approximately 60 billion tokens, valued at over $9 million.
However, new information suggests that these transactions were not the result of insider trading but rather the activity of maximal extractable value (MEV) bots. These bots exploit arbitrage opportunities to generate significant profits from MAGA tokens. Dominium, a user on the X platform, pointed out this possibility, but both Lookonchain and Dominium have not responded to requests for comments.
In response to the allegations of MEV bot involvement, Dominium confronted Lookonchain and provided additional evidence, including detailed breakdowns of the transactions.
The initial post by Lookonchain received backlash from the community, with many users questioning the credibility of the blockchain analysis account. This shift in narrative has cast doubt on the insider allegations and sparked debates about market manipulation.
MAGA is a memecoin that stands for Donald Trump’s “Make America Great Again” slogan. The price of MAGA recently rallied after Trump made positive comments about cryptocurrencies. When asked about accepting cryptocurrency donations for his campaign, Trump expressed his willingness to explore the option.
Despite the growing popularity of memecoins, it is important to note the high volatility and risks associated with them. The memecoin creation platform Pump.fun, for example, recently suffered an exploit that resulted in a $1.9 million loss. The former employee responsible for the exploit claims to have been arrested and is currently out on bail in the United Kingdom.
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