The MAGA memecoin has seen drastic price rallies following pro-crypto comments from Republican presidential candidate Donald Trump.
A savvy trader made a $2.7 million profit in just three days on the Donald Trump-themed MAGA (TRUMP) meme token.
The memecoin trader, known as wallet “0x303” spent over $535,000 to buy six billion MAGA tokens on May 25, making an over 505-fold return on his initial investment, according to a May 27 X post by Lookonchain:
“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.”
The savvy trader’s wallet is made up entirely of MAGA tokens, which are up over 82% in the past 24 hours. The wallet is currently worth over $2.2 million and was worth over $4 million just a few hours ago, around 7:00 am UTC, according to CoinStats data.
The MAGA token has seen significant surges following digital asset-related comments by Republican presidential candidate Donald Trump.
On May 9, MAGA surged over 78% intraday, with trading volume rising over 62% to $281 million, following comments from Trump, who stated his pro-crypto stance.
“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 savvy trader’s $2.7 million profit spurred widespread insider trading allegations on X, with Datawallet commenting on Lookonchain’s post:
“No one spends $500k on a memecoin without some ‘extra’ knowledge.”
Last week, Lookonchain noted that “an insider is selling” MAGA memecoins. This insider had previously spent 5.35 Ether to purchase 33% of the MAGA supply using 22 different wallets.
However, the transactions may be a result of maximal extractable value (MEV) bot activity — exploiting arbitrage opportunities to generate significant MAGA profit margins — rather than “insider” trading, according to pseudonymous X user Dominium.
“That’s MEV bot transactions if you look at it carefully”
Many other users have questioned the accuracy of Lookonchain’s claims, suggesting that the alleged insider is merely an MEV bot.
Whether the MAGA pump was driven by insiders or not, memecoins still carry significant risks and price volatility. An unfortunate memecoin trader lost over $1 million following the Normie memecoin exploit, which resulted in an over 99% loss on his initial $1.16 million investment.
Source: cointelegraph.com
