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<p>The post <a href="https://coinpedia.org/traders/alert-meme-coin-pump-and-dump-insiders-earn-4m-trader-loses-1m/" rel="noopener noreferrer nofollow">Alert! Meme Coin Pump and Dump? Insiders Earn $4M, Trader Loses $1M</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>In the volatile world of cryptocurrencies, some believe meme coins are the best way to make easy money. Today on August 9, 2024, an on-chain analytic firm Lookonchain shared a post on X (previously Twitter) revealing that five insider wallets have made over $4 million from a newly created meme coin. Meanwhile, another trader lost nearly $1 million at the same time in the same token as its price crash.</p>
<h2 id="five-insiders-made-4-million-with-new-meme-coin" data-name="five-insiders-made-4-million-with-new-meme-coin" class="wp-block-heading"><strong>Five insiders made $4 million with new meme coin</strong></h2>
<p>According to lookonchain, these five insiders created a new wallet following the launch of this new meme coin and withdrew funds from Coinbase and Bybit.</p>
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   <p lang="en" dir="ltr">5 Insider Wallets Earned Over $4M on <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> in Just 6 Hours!<a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> is a new <a href="https://twitter.com/hashtag/MEMEcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#MEMEcoin</a> created 6 hours ago.<br><br>5 wallets spent ~5,580 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($882K) to buy 104.64M <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> the first time <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> opened trading, and sold 92.77M <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> for 31,994 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($5.05M), making 26,414 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($4.17M).<br><br>These 5… <a href="https://t.co/oAEZFeYE39" rel="noopener noreferrer nofollow">pic.twitter.com/oAEZFeYE39</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1821618713873018939?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 8, 2024</a>
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<p>After creating the wallets, these insiders spent 5,580 Solana (SOL) worth $882,000 to buy 104.64 million RTR meme coins in open trading. They then sold 92.77 million RTR coins for 31,994 SOL worth $5.05 million. In a short period, these five insider wallets made over $4.17 million.</p>
<h2 id="pump-and-dump-in-a-new-meme-coin" data-name="pump-and-dump-in-a-new-meme-coin" class="wp-block-heading"><strong>Pump and dump in a new meme coin?</strong></h2>
<p>Whereas, another trader in FOMO lost 5,687 SOL worth $898,500 in the same meme coin in just 4 hours, as shared by Lookonchain. According to the report, this trader spent 5,800 SOL worth $916,400 to buy 7.2 million RTR meme coins at the highest price and sold them all for just 113.3 SOL worth $18,000, as the price crashed. This resulted in a loss of nearly $898,500.</p>
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   <p lang="en" dir="ltr">Please don't <a href="https://twitter.com/hashtag/FOMO?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#FOMO</a> buy <a href="https://twitter.com/hashtag/MEMEcoins?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#MEMEcoins</a>!<br><br>This guy lost 5,687 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($898.5K) on <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> in just 4 hours!<br><br>He spent 5,800 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($916.4K) to buy 7.2M <a href="https://twitter.com/search?q=%24RTR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$RTR</a> at the highest price point due to <a href="https://twitter.com/hashtag/FOMO?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#FOMO</a>, and sold all for only 113.3 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($18K) after the price crashed, losing <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$SOL</a>($898.5K)!… <a href="https://t.co/d5j4l3KgqS" rel="noopener noreferrer nofollow">pic.twitter.com/d5j4l3KgqS</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1821625976583057732?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 8, 2024</a>
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<p>It looks like these insiders pumped the price of meme tokens, and once traders began participating they dumped all the tokens they had bought in open trading at a higher price.&nbsp;</p>
<p>More likely, there is a high possibility that this meme coin was created solely for the <a href="https://coinpedia.org/news/is-elon-musks-twitter-logo-stunt-a-pump-and-dump-scheme/" rel="noopener noreferrer nofollow">pump and dump</a> scheme. While lookonchain does not mention this in his posts, the current situation suggests it resembles a typical pump-and-dump case.&nbsp;</p>
<h3 class="wp-block-heading" id="h-traders-attention-please"><strong>Traders attention, please</strong></h3>
<p>Investors and traders need to understand that meme coins are not an easy way to make money in the crypto industry. There are many blue-chip cryptocurrencies are there with high market cap such as Bitcoin (BTC), Ethereum (ETH), and&nbsp; Solana (SOL). Make sure to invest only in top cryptocurrencies or in projects where institutions or whales like Micheal Syalor, Arthur Hayes, or Justin Sun are involved.&nbsp;</p>

Alert! Meme Coin Pump and Dump? Insiders Earn $4M, Trader Loses $1M

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