A Cryptocurrency Trader Made a Windfall Profit on a Little-Known Memecoin After Purchasing Over 256 Million Tokens Shortly After the Token Started Trading

A cryptocurrency trader managed to make a windfall profit of 4,721 Solana (SOL) tokens, valued at around $802,500, in just an hour of trading a little-known memecoin. The trader's success has sparked speculation within the crypto community.

The trader purchased over 256 million tokens of the Solana (SOL)-based memecoin CTO for a mere $8,500 shortly after the token started trading on decentralized exchange Raydium.

According to data shared by on-chain analysis service Lookonchain, the trader was the third address to acquire CTO tokens right after they started trading on the exchange.

Within an hour, the trader sold their considerable holdings to net a gain of 94x. In total, the trader spent 50 Solana (SOL) tokens worth around $8,500 to buy 256.8 million CTO, and then went on to sell 227.67 million CTO for 4,771 SOL tokens.

The trader notably also made over $100,000 with another newly launched cryptocurrency earlier.

A trader made 4,721 $SOL($802.5K) on $CTO in just 1 hour, a gain of 94x! ?

@RaydiumProtocol launched a #MEMEcoin $CTO on @makenowmeme about 1 hour ago.

This trader spent 50 $SOL($8.5K) to buy 256.8M $CTO and was the 3rd address to buy $CTO.

He then sold 227.67M $CTO for 4,771… pic.twitter.com/rSKOTVknx7

The trader's success has sparked speculation within the cryptocurrency community. Some believe they were simply a skilled “memecoin hunter,” capitalizing on the fleeting popularity of token launches on the Solana network, while others suspect insider knowledge may have played a role, given the early timing of the purchase.

As reported, earlier this year an insider trader managed to turn just 0.34 ETH tokens, worth $878, into around $550,000 in just a couple of hours after trading a newly launched memecoin, with data from the blockchain suggesting the trader is the developer behind it.

The trader spent the 0.34 ETH tokens to buy 80 million $FERRET tokens, which were spread across five different wallets. The tokens were bought just as $FERRET opened for trading.

The trader then went on to sell 11.8 million $FERRET tokens for 21 ETH, worth around $54,000, and is still left holding onto 68.2 million FERRET, worth nearly $500,000. Both the insider and the deployer behind the cryptocurrency are seemingly using the same wallet address to transfer tokens to, suggesting that the insider is the deployer.

Both traders managed to make immense profits in a short span of time, highlighting the volatility and potential for quick gains in the cryptocurrency market. However, it's also worth noting the risks involved in trading memecoins or any other cryptocurrencies without conducting proper research.

Both traders' immense profits are also a testament to the fear of missing out that can drive up demand for new tokens, especially those associated with memes.

Moreover, the quick profits made by both traders could further stoke the fires of FOMO among retail traders and investors, who may be eager to join the fray in hopes of striking it rich.

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