Crypto trader turns $3.3k into $2.5 million in 3 hours 
Cryptocurrency Nov 24, 2024 Share
A cryptocurrency investor has recorded over $2 million in returns by investing in the Solana (SOL)-based meme coin Slopfather (FATHA), which is witnessing an increasing capital inflow.
The trader, suspected to be a user with the X username Cooksassistant, initially invested $3,300, which turned into a staggering $2.5 million in just three hours, according to data shared by Lookonchain on November 23.
According to the trade analysis, the trader purchased 57.89 million FATHA for 13 SOL on Pump.fun, a platform that allows the creation of meme coins.
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Following the purchase, FATHA’s market cap surged to over $60 million, resulting in a return of about 750-fold. The trader sold all their FATHA at the peak, securing 9,718.5 SOL, valued at $2.5 million.
SOL/FATHA trading pair. Source: Dex Screener
After the impressive profit, the trader swapped 9,500 $SOL for 2.45 million $USDC and bridged the funds to the Ethereum network.
Further on-chain analysis of the investor’s wallets indicates they have been on a meme coin-hunting spree. Their wallet had completed 60 token trades with a win rate of 42.37%, translating to a profit of $2.7 million within three days.
Cooksassistant cryptocurrency trading returns. Source: Lookonchain
Concerns of insider trading
Generally, FATHA’s significant buying pressure has also seen other investors turn modest investments into substantial profits. In another trade, an unidentified investor saw their initial $10,400 investment grow to $389,000 with an 83% win rate, according to data shared by wallet tracker Mv_Crypto.
Another analysis by Stalkchain revealed the possible existence of several suspicious wallets that purchased large quantities of FATHA 15 to 16 hours after the launch, driving the price spike.
These wallets quickly pumped the price, but there are concerns that they may also be poised to dump, causing significant volatility.
To this end, the wallet tracing platform suggested that FATHA’s chart movement doesn’t appear organic, with price fluctuations potentially influenced by insiders who front-ran the market.
Interestingly, this trade has raised questions about the possibility of the investors having insider knowledge. In recent weeks, select traders have recorded massive profits in such trades, which have been deemed suspicious as the investors are suspected to have been privy to insider information, such as the listing of a token on a major exchange.
At the same time, suspicion was raised around a transaction in which a trader turned $58,000 into $7.5 million, capitalizing on the Goatseus Maximus (GOAT) price explosion.
In general, FATHA is part of the growing momentum of meme coins, especially on Solana, which are gaining further attention through social media activity. By press time, FATHA was trading at $0.02648 with a market capitalization of $27 million.
Featured image via Shutterstock