Several blockchain wallets suspected of insider trading are reported to have multiplied a $14,600 investment into a whopping $20 million, sparking debates about fairness and transparency in the world of crypto. The wallets profited from the new memecoin Focai.fun (FOCAI), which was launched on Solana’s memecoin launchpad Pump.fun. These wallets saw over 136,000 times return on their initial investment, with the purchase of over 60.5% of the total FOCAI token supply.
Crypto analysts have raised questions as this significant share of tokens held by a small number of wallets could pose a threat to the principle of decentralization, which is integral to cryptocurrency operations. FOCAI token saw its market cap spike to $46 million at 4:45 am UTC though it fell by almost 14% to $39.6 million by 11:55 am UTC.
Fascinatingly, one address named “9DtTb” managed to score nearly $3.5 million in a matter of three hours. This wallet purchased 123.32M FOCAI for 5.39 SOL and then sold it for 16,070 SOL, garnering a profit of a staggering 2973 times.
However, it is essential to note that while memecoins can be profitable for a handful of traders, the majority continue to struggle. More than 99% of traders on Pump.fun either lose money or make a profit lesser than $1,000. As per data, out of 9.8 million wallets, only 50 have made up to $1,000 in returns, and only one wallet was able to make a profit over $10,000.