Crypto Trader Turned $285 Into $627,000 in One Day; Lucky or Insider Trading?
An anonymous cryptocurrency trader has turned a $285 purchase into $627,000 in a single day, onchain data shows. However, the activity has raised insider trading suspicions among analysts considering the timing and patterns usually seen in these plays.
Lookonchain originally reported the activity on X on Jan. 19, flagging four wallets as belonging to the same “insider” of the recently launched pump.fun memecoin ZReaL. According to the analyses, this “insider” spent $285 to buy 66.3 million of ZREAL, then sold 30% (19.98 million) for $210,000 of realized profits.
The four accounts were still holding 46.3 million ZREAL by Lookonchain’s posting time, worth $417,000 of unrealized gains. Flagged addresses are: AG2GXkD6ajUtmJVYuxSLTJEskdZK1UVRS4dpYy5iphqk, E3YwAXRJ8Nn8MPGNF4JqsK8y9jpLMp9ibw575Dx8UHFw, 5em8LfzZatMokQQLqH8rBsRw4nrk3ByAYBa3enb51nXf, and ZFHvjGsD39AzjFf1yqP1xaZefY6RX7TaVrsh2wW5xAF.
Insider Trading and Sniping in Crypto Memecoins
A CoinDesk report earlier today described the practice as “sniping,” considered a popular form of insider trading in launching memecoins, especially on platforms like PumpFun.
Pumpfun facilitates this behavior by design and helps to attract buyers into the recently launched—and often sniped—memecoins. This increases the risks some experts describe as “The Greatest Fool Theory,” when speculators buy assets they do not value enough to hold for the long term, with the expectation that a “greater fool” will be willing to pay a bigger price than they did. However, unless the speculator is an insider trader or a sniper, each purchase of an already launched memecoin risks this person being the “greatest fool” themselves if the amount of potential buyers dries out as things develop.
On the other hand, institutional players from traditional finance (TradFi) continue to make valuable moves into crypto and blockchain. While Pumpfun specializes in trading sniped memecoins on Solana, the New York Stock Exchange (NYSE) unveiled it has been developing a trading platform for tokenized securities, Coinspeaker reported. Nasdaq, another United States stock exchange was already making moves into tokenization, per 2025 reports.
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