Traders are cashing in big on new crypto launches, turning small investments into massive returns, but there are growing concerns of insider trading.
The recent launch of new cryptocurrency projects has created a fertile ground for traders seeking quick profits. Several investors have turned modest investments into substantial returns, with one trader achieving an exceptional 1000x profit in just 12 hours.
Traders Reap Massive Returns
Lookonchain data revealed multiple traders who transformed small sums into significant profits with a token dubbed INCEPT. One trader turned $95 into $96,900, while another made $89,400 with a mere $93.
Unbelievable!😱
Turned $95 into $96.9K in just 12 hours—more than a 1000x return!
Many of the wallets that made ~1000x profit on $INCEPT appear to be insider wallets. They were all created 4 days ago and have only traded $INCEPT.https://t.co/AvNHFbRjpO pic.twitter.com/aOm3z1VXAx
— Lookonchain (@lookonchain) September 26, 2024
Other notable gains include a trader who invested $117 and sold for $79,500, and another who turned $63 into $71,700. The trend continued with traders converting investments ranging from $68 to $1,249 into amounts as high as $61,900.Â
Despite the impressive profits, concerns have surfaced around the legitimacy of these transactions. Lookonchain identified that some wallets generating substantial returns may be insider accounts.
These wallets, created just days before the trades, have exclusively dealt with the INCEPT token, raising questions about possible insider trading activities.
Potential Insider Trading?
The rapid increase in INCEPT’s value has drawn the attention of investors, fueling both excitement and skepticism.
Some within the community have expressed concerns over potential market manipulation. The swift activation of the wallets and their exclusive trading activity on INCEPT have led to speculations about insider involvement.
Meanwhile, this is not an isolated occurrence. Similar patterns have been observed in other tokens like MOODENG, with some traders achieving notable success by strategically timing their investments.
Previous Returns on Emerging Tokens
For instance, Lookonchain recently reported another significant profit made on the Solana blockchain, where an investor turned a $1,331 investment in Moo Deng (MOODENG) tokens into $3.4 million within two weeks.Â
The trader initially sold 9.8 Solana tokens to acquire 38.7 million MOODENG tokens, and the token’s value surged dramatically over the following days. This rapid appreciation raised similar concerns about the potential role of insiders or developers in driving the price spike.
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