In just three days, a shrewd trader profited $2.7 million from the Donald Trump-themed MAGA (TRUMP) meme token.According to a May 27 X post by Lookonchain, the memecoin trader known as wallet “0x303” spent more than $535,000 to purchase six billion MAGA tokens on May 25, yielding a return on his initial investment of more than 505 times.
“He spent $537.5K to buy 6B $MAGA on May 24 and May 25, then sold 1.5B $MAGA for 744K $USDT to take profits 10 minutes ago. He currently holds 4.5B $MAGA, worth $2.51M.”
MAGA tokens, which have increased by more than 82% in the last day, make up the whole contents of the astute trader’s wallet. According to CoinStats statistics, the wallet is currently valued at over $2.2 million, while it was worth over $4 million just a few hours ago, at around 7:00 am UTC.
Following remarks made by Republican presidential candidate Donald Trump regarding digital assets, the MAGA token has experienced notable increases in value.On May 9, MAGA increased by more than 78% intraday, and trading volume increased by more than 62% to $281 million as a result of Trump’s remarks endorsing cryptocurrency.
“I’m fine with it. I want to make sure it’s good and solid and everything else. But I’m good with it. And if you like crypto in any form (and it comes in many different forms), if you are in favor of crypto, you better vote for Trump.”
The astute trader’s $2.7 million gain sparked numerous accusations of insider trading on X, and Datawallet responded to a post on Lookonchain.
“No one spends $500k on a memecoin without some ‘extra’ knowledge.”
Lookonchain reported last week that MAGA memecoins were being sold by “an insider.”Using 22 separate wallets, this insider has already spent 5.35 Ether to buy 33% of the MAGA supply. Nevertheless, anonymous X user Dominium speculates that rather than “insider” trading, the trades might be the product of maximal extractable value (MEV) bot activity, which takes advantage of arbitrage possibilities to produce significant MAGA profit margins.
“That’s MEV bot transactions if you look at it carefully”
Numerous other people have questioned Lookonchain’s veracity, speculating that the purported insider is nothing more than a MEV bot. Memecoins continue to be extremely risky and volatile in price, regardless of whether insiders were responsible for the MAGA pump. The Normie memecoin exploit caused an unhappy memecoin trader to lose over $1 million, or over 99% of his original $1.16 million investment.