In just three days, a clever trader managed to make a whopping $2.7 million profit on the MAGA (TRUMP) meme token, which is inspired by Donald Trump. This trader, known as wallet “0x303,” invested over $535,000 to purchase six billion MAGA tokens on May 25. As a result, the trader saw an incredible 505-fold return on their initial investment, according to a post on Lookonchain on May 27. The MAGA tokens have seen a significant surge lately, with an increase of over 82% in the past 24 hours. Wallet “0x303” is currently valued at over $2.2 million and was even worth over $4 million earlier today at 7:00 am UTC, as per CoinStats data.
The MAGA token’s surge in popularity can be attributed to comments made by Republican presidential candidate Donald Trump regarding digital assets. On May 9, the token experienced a surge of over 78% intraday, with trading volume increasing by over 62% to $281 million, all thanks to Trump’s pro-crypto stance.
The impressive $2.7 million profit made by the savvy trader has raised suspicions of insider trading on X, with Datawallet commenting on Lookonchain’s post. Last week, Lookonchain observed that an alleged insider was selling MAGA memecoins. This insider had previously used 5.35 Ether (ETH) to purchase 33% of the MAGA supply across 22 different wallets. However, some users, including pseudonymous X user Dominium, believe that these transactions may be a result of maximal extractable value (MEV) bot activity rather than actual insider trading. MEV bots exploit arbitrage opportunities to generate significant profits from MAGA.
Despite the potential for insider trading or MEV bot activity, it is important to remember that memecoins still come with significant risks and price volatility. An unfortunate trader recently lost over $1 million due to the Normie memecoin exploit, resulting in a devastating 99% loss on their initial investment of $1.16 million.
In conclusion, while the MAGA token has experienced remarkable success, traders must remain cautious and aware of the risks involved in investing in memecoins.