A crypto insider has made over $153,000 of realized profits in 15 hours, trading in the Solana (SOL) ecosystem. The cryptocurrency trader started with a purchase worth $600 and currently holds over $2.5 million worth of VibeCat (Minette).
Interestingly, the address purchased the tokens at the same block VibeCat’s developer added the initial liquidity to the decentralized exchange. This is a solid indicator of inside trading, considering Solana blocks have an interval of 400 milliseconds.
As developed, the crypto insider withdrew 3.89 SOL from Binance, worth $600. With this initial amount, the address bought 2.46 Minette less than a second after its creator deposited the first available liquidity for trade.
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According to Lookonchain‘s post, the trader sold 1.04 billion Minette for 998.7 SOL 15 hours later, realizing a profit of approximately $153,000. By the time of the post, the insider still held 1.42 billion Minette, valued at around $2.5 million.
Crypto insider rug pull alert
Notably, Lookonchain warned its followers about the risk of a rug pull from VibeCat’s creators and insiders. This is because the creator kept the LP tokens active—received as an “I Owe You” (IOU) for added liquidity.
Burning these IOUs is a common practice when launching a new token to avoid huge dumps, also known as a “rug pull.” Moreover, the insider’s current holdings could create constant selling pressure far above the available liquidity, impacting Minette’s price.
This is another example of how crypto insiders often take advantage of retail by creating and launching meme coins and money-grab schemes. They benefit from information asymmetry and the hype of a market that insists on gambling with poor fundamental digital assets.
Cryptocurrencies are inherently volatile and present considerable risks for traders, investors, and users, even with solid and usable projects. However, trading meme coins adds another layer of risks that will often drain money from many to a few insiders.
For this reason, investors should avoid these schemes and look for a cryptocurrency‘s fundamentals, cautiously researching supply and demand properties.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
