Memecoin Trader’s $8.9M Profit in an Hour Sparks ‘Insider’ Claims

A trader, whose identity remains unknown, managed to make a staggering profit of $8.9 million in less than one hour by trading the Shroom (SHROOM) memecoin. This lucrative transaction took place during the same block in which developers added liquidity. The trader invested 6,000 Solana (SOL) tokens, equivalent to $1.04 million, in Shroom coins. After just one hour, the trader sold their holdings for 57,112 SOL, amounting to $9.93 million. The data provided by on-chain analytics firm Lookonchain revealed these impressive figures on March 20.

The Shroom memecoin, launched on Raydium on the same day, is a mushroom-themed token with no underlying utility or intrinsic value. Since its launch, the Shroom token’s price has plummeted by over 70%, and it currently maintains a market cap of $11.88 million according to Geckoterminal. The remarkably advantageous timing of this profitable trade has sparked allegations of “insider trading” within the crypto community. In response to Lookonchain’s post, a user named Blockchain Maxi stated, “It’s called Insider Trading. You can never win with new memes, don’t even try.” Another pseudonymous trader, Bull.Bnb, speculated, “That’s dev himself,” implying the involvement of the token’s developer.

The Shroom memecoin caught the attention of investors after Trippy Labs announced an unexpected airdrop for Shroom in a post on March 20. This post received over 268,000 views within 16 hours, generating significant interest in the Solana-based memecoin. The frenzy surrounding memecoins persists as Book Of Meme (BOME), a recently launched meme token, has seen a remarkable surge of over 1,100% on the weekly chart. CoinMarketCap data reveals that BOME currently holds the 130th position in terms of market capitalization, with a value of $617 million. This particular token belongs to a series of new memecoins that raised funds through a controversial presale model. In the three days leading up to March 18, these Solana-based memecoins successfully raised over $100 million worth of SOL through presales.