Crypto Insiders Rake in Millions from Memecoin Manipulation

Insiders behind a meme-inspired cryptocurrency project on Solana, $TIM, recently turned an investment of $6,400 into $8.28 million in a single day. They purchased 52.66% of the $TIM supply within minutes of its release, then sold the tokens in small increments to avoid detection. This follows a trend of Solana whales accumulating memecoins during a market downturn, with some whales purchasing over $44.5 million worth of various memecoins from KuCoin and Binance.

Cryptocurrency Insiders Profit Extensively from Meme-Inspired Token

A recent investigation by the on-chain analysis service Lookonchain has unveiled a lucrative maneuver by cryptocurrency insiders, who transformed an investment of just over $6,400 into a staggering $8.28 million within a single day. The individuals involved exploited a meme-inspired cryptocurrency, $TIM, to generate significant profits, which they are currently realizing by selling the acquired tokens for a substantial gain.

According to Lookonchain's findings, two newly created cryptocurrency wallets swiftly purchased 526.6 million $TIM tokens, representing 52.66% of the total supply, shortly after the token commenced trading. This initial investment of 44.78 Solana ($SOL) tokens, valued at approximately $6,404, rapidly grew to an impressive $8.28 million.

To avoid attracting unwanted attention, the insiders reportedly employed a strategy of selling the $TIM tokens in small increments. They transferred the acquired tokens to multiple cryptocurrency addresses before proceeding with the sale.

The successful manipulation of $TIM aligns with a broader trend observed in recent months, where Solana-based memecoins have experienced significant surges in value. CryptoGlobe has previously reported that cryptocurrency whales have capitalized on this trend, often acquiring substantial quantities of tokens soon after their initial launch.

One notable example is a cryptocurrency trader who invested an additional $40,000 in the meme-inspired token $BONK after realizing a profit of $6.9 million through its initial trade.

Intriguingly, Solana whales have exhibited a predilection for accumulating memecoins during recent downturns in the cryptocurrency market, when prices of these assets typically decline.

Data gathered by Lookonchain indicates that these whales began actively amassing memecoins as prices started to fall. Notably, they favored tokens with themes such as Sloth ($SLERF), Pepe ($BOME), and Joe Biden ($BODEN).

These whales sourced these tokens from prominent cryptocurrency exchanges like KuCoin and Binance. One whale transferred 31,916 SOL (approximately $44.5 million) from KuCoin and subsequently invested nearly $300,000 in BODEN.

Another whale withdrew $2.25 million from Binance and subsequently allocated $1.12 million to purchase SLERF and $660,000 to acquire BOME.

The investigation by Lookonchain highlights the potential for significant financial gains through the manipulation of meme-inspired cryptocurrencies. However, it also underscores the importance of exercising caution when investing in such speculative assets, as their value can fluctuate drastically.