A memecoins trader has been accused of using insider information to earn $6.72 million from trading $LIBRA, according to Lookonchain. Earlier, the trader earned $1.3 million trading with the $TRUMP token during his previous transaction.
$6.72M $LIBRA Profit Sparks Concerns Over Insider Activity
The trader established two fresh digital wallets before launching of $LIBRA. He proceeded to deposit funds into those wallets before they were created. Upon $LIBRA launching the trader spent his wallets to buy 5.08 million $LIBRA. He invested the total amount of $2.02 million to acquire the purchase.
The tokens purchased by this trader were sold right after the transaction at $8.74 million. Based on his transactions he successfully amassed $6.72 million profit. The cryptocurrency sector expresses worry about the trader’s swift earnings during this transaction. Numerous observers suspect the trader used insider knowledge based on the way he timed his transactions. Traders also speculate about his suspicious activities because of his past accomplishments with $TRUMP.
The situation illustrates the dangerous nature of manipulating cryptocurrency markets during trading activities. Secret information remains a source that specific traders use to boost their personal earnings. The situation prompts diverse queries concerning market openness as well as ethical behavior.
Insider Memecoins Trading Fears Drive Investor Demand for New Regulations
A large number of investors now demand enhanced regulations to stop insider trading practices. The investors support added restrictions because these measures aim to safeguard both fair competition and protect the market. The cryptocurrency industry requires transparency because it builds necessary trust between stakeholders according to investors.
Lookonchain highlighted in this reported case how traders who have inside information can generate swift financial gains. Fair trading practices demand immediate attention according to this situation. The authorities will investigate to check if they can prove any legal violation of laws.
