The resurgent crypto markets along with the emergence of numerous novel cryptocurrency ventures have presented daring investors with abundant opportunities to potentially turn hundreds or thousands of dollars into millions in a swift manner.
On July 1, a remarkable accomplishment was achieved by a trader who utilized 70 units of Solana (SOL) – valued at just under $10,000 – to acquire nearly 82 million units of a recently launched cryptocurrency named BAKED. Within a mere 30 minutes, the same trader successfully offloaded their entire BAKED holdings for 21,581 SOL, resulting in a profit of over $3 million from the initial $10,000 investment within less than an hour.
The timing of the BAKED transaction, as observed by the blockchain analysis platform Lookonchain, suggested that the investor likely did not possess insider information but rather was fortunate, especially considering their unsuccessful attempts in the past, where they lost money on two occasions.
This particular trade exemplifies cryptocurrency sniping – a tactic involving the swift acquisition of a token, often immediately upon its availability for trading, frequently executed using a trading bot.
The debut of BAKED was marred by notable internal activities, with Lookonchain revealing that approximately 800 million tokens were rapidly acquired in about a second, with around half being obtained by the developer’s wallet. Additionally, investigations conducted by the blockchain analysis platform indicated that 15 out of the 19 associated addresses likely belong to the same insider, who withdrew the utilized SOL from the cryptocurrency exchange Bitget three days prior to the BAKED launch.
Collectively, the developer and insider wallets are believed to have procured up to 78% of the overall circulating supply of BAKED tokens, and even after some divestment, they still retain approximately 76%.
BAKED was introduced on the DegenFund platform, and due in part to sniping activities, the launch was clouded by allegations of manipulation, prompting the official X page to issue multiple statements asserting the fairness of the launch.
Disclaimer: The information provided herein does not constitute investment advice. Investment carries inherent risks, and your capital is subject to potential loss when engaging in such activities.
