A deft cryptocurrency investor recently amassed almost $28 million in profit by purchasing memecoins influenced by Binance co-founder Changpeng “CZ” Zhao’s pet, thus piquing accusations of insider trading from the crypto community. Zhao’s revelation of his dog’s name, “Broccoli,” on February 13, led to a proliferation of corresponding Broccoli memecoins.
These coins rapidly found a home on leading memecoin launch platforms. A shrewd crypto trader seized the opportunity created by the stir on social media after Zhao’s revelation and primarily acquired each memecoin associated with Broccoli. Such an acquisition process in crypto jargon is known as “sniping,” a method followed by investors to take advantage of short-term or momentary opportunities.
These meme-themed digital currencies exhibit inherent lack of utility, yet have paved the way for some crypto traders to become millionaires. However, this particular $28 million windfall has led to sparks of insider trading accusations among the crypto community. Reports indicate some of the trading addresses are linked with the developers of certain Broccoli memecoins, indicating possible collusion.
Notwithstanding the buzz surrounding the Broccoli-themed memecoins, CZ emphasized he would not be launching a memecoin of his own, leaving the decision to the crypto community. Further intensifying the crypto landscape, the Trump family recently launched their own memecoins, prompting increased regulatory concerns from the Securities and Exchange Commission over possible market manipulations.