- A trader identified as “wallet 0x303” turned a $535,000 investment into a $2.7 million profit in just days with MAGA tokens.
- The MAGA token surged 82% following favorable comments on cryptocurrencies by Donald Trump.
- Allegations of insider trading versus MEV bot activities stir debate over the recent MAGA token price movements.
An individual known only by their wallet address “0x303” has realized a profit of $2.7 million over a mere three-day span through transactions involving the Donald Trump-themed MAGA meme token. This trader’s initial outlay of approximately $535,000 on May 24 and 25 facilitated the acquisition of six billion MAGA tokens, according to data shared by Lookonchain on X.
Rapid Asset Appreciation
Following the purchase, the trader swiftly capitalized on the token’s value surge, selling 1.5 billion MAGA tokens for $744,000 in Tether (USDT), securing profits just 10 minutes prior to the Lookonchain report. Despite this sale, the trader still holds 4.5 billion MAGA tokens, valued at around $2.51 million.
The value of these tokens spiked significantly, with the MAGA token experiencing an 82% increase within the last 24 hours. This increase in value is partly attributed to recent digital asset endorsements by Donald Trump, the Republican presidential candidate, who recently reiterated his support for cryptocurrencies.
Speculation and Controversy
Trump’s positive stance on digital assets, expressed on May 9, has evidently played a role in boosting the trading volume and price of the MAGA token. During that day, the token saw an intraday increase of 78%, with its trading volume escalating by over 62% to $281 million.
However, this dramatic profit has not been without controversy. Discussions on X, led by data from Datawallet, suggest that the substantial investment might involve insider knowledge, considering the high risk typically associated with meme coins. Lookonchain’s earlier observations hinted at possible insider trading, noting that an “insider” had used multiple wallets to accumulate a significant portion of the MAGA supply.
On the other hand, some community members, including a pseudonymous user named Dominium, argue that the transactions could be attributed to maximal extractable value (MEV) bots. These bots are known for exploiting market inefficiencies and arbitrage opportunities, which could explain the large profits without necessarily implying insider trading.
Market Volatility and Risks
The situation encapsulates the volatile and speculative nature of meme tokens in the cryptocurrency market. While some traders like “0x303” secure massive returns, others face severe losses, as highlighted by a recent incident where a trader lost over $1 million due to an exploit in the Normie meme token, resulting in a nearly total loss of the initial investment.
