The emergence of Thug Cat ($THUG), a new Solana memecoin, has caught the eye of the crypto community, propelling it to the sixth position on the Dex screener today.
However, recent data from Lookonchain reveals an intriguing development involving insiders profiting from the token’s surge.
Insiders capitalized on the hype surrounding Thug Cat by strategically maneuvering their holdings to maximize gains. According to the data, insiders made a significant profit of 9,954 SOL (equivalent to $1.49 million) by dumping their Thug Cat tokens.
Insiders Made 9,954 $SOL ($1.49M) by Dumping $Thug on You!
The Insiders spent 1,500 $SOL($225K) to buy 674M $Thug via 4 wallets at the same block where the developer added liquidity.
Then distributed 674M $Thug to multiple wallets and sold 464M $$Thug for 11,454 $SOL($1.72M).… pic.twitter.com/gB0dy8q6u0
— Lookonchain (@lookonchain) May 8, 2024
The insider activity began with a calculated investment of 1,500 SOL (approximately $225,000) to acquire 674 million Thug Cat tokens across four wallets. Notably, this purchase coincided with the developer’s addition of liquidity to the platform, suggesting a coordinated effort to capitalize on the token’s liquidity event.
Other Activities By THUG Cat Insiders
Subsequently, the insiders distributed the acquired Thug Cat tokens to multiple wallets before initiating a sell-off. A total of 464 million Thug Cat tokens were liquidated, resulting in a substantial profit of 11,454 SOL (approximately $1.72 million) within a mere 10-hour timeframe.
Following the sell-off, the insiders opted to burn the remaining 210 million Thug Cat tokens, effectively reducing the circulating supply of the token. Despite the insider activity and subsequent sell-off, Thug Cat’s market capitalization currently stands at $1 million, indicating continued investor interest in the project.
The rapid profit-taking by insiders highlights the speculative nature of the memecoin market and the potential for significant gains in short periods. As Thug Cat continues to garner attention within the Solana ecosystem, investors should remain vigilant and consider the implications of insider activity on the token’s price dynamics.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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