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CryptoIntelligence 2025-01-05 11:53:00

Suspected Insider Trading in Memecoin FOCAI Yields $20M Profit for 15 Wallets

At least 15 blockchain wallets suspected of insider trading have reportedly turned an initial $14,600 investment into over $20 million, raising concerns about fairness and transparency in cryptocurrency markets. These wallets collectively made over $20 million in profit trading FOCAI, a memecoin recently launched on Solana’s memecoin platform Pump.fun. The insiders allegedly achieved a 136,000-fold return on their investment, controlling over 60.5% of the token supply, according to blockchain analytics firm Lookonchain. “They then sold all their $FOCAI for 94,175 $SOL ($20.5M), netting 94,108 $SOL ($20.48M),” Lookonchain reported. The large concentration of FOCAI tokens in a few wallets has drawn criticism from analysts, highlighting risks to decentralization—a key principle in cryptocurrency. FOCAI’s market capitalization peaked at over $46 million at 4:45 am UTC before falling nearly 14% to $39.6 million by 11:55 am UTC, according to Pump.fun data. One Wallet Profits $3.5M in Three Hours Among the 15 wallets, one address, labeled “9DtTb,” made $3.47 million within three hours. Onchain Lens, a blockchain analytics platform, explained, “The insider bought 123.32M $FOCAI for 5.39 SOL ($1,168) on Pump.fun. The insider then sold the entire $FOCAI for 16,070 SOL worth $3.47M, making a x2973 profit.” Memecoins: High Gains for Few, Losses for Many While memecoins like FOCAI can yield massive profits for a select few, most traders incur losses. Over 99% of traders on Pump.fun are unprofitable, with only 50 wallets generating up to $1,000 in returns out of 9.8 million. This highlights the disparity in profitability within the memecoin market, raising further questions about market dynamics and transparency.