In an astonishing display of cryptocurrency trading, a Solana ecosystem trader turned an initial investment of $49,000 into nearly $2 million within just five hours. This trade involved Tori the Cat (TORI), a newly launched meme coin, sparking significant concerns about potential insider trading.
The transaction unfolded when the trader purchased 261.4 million TORI using 344 SOL (Solana’s native token), which had been transferred from Binance to two new wallet addresses on consecutive days. The sheer speed and scale of the profit garnered—approximately 4000%—caught the attention of onlookers and analysts alike.
Lookonchain, a blockchain analytics platform, noted that shortly after acquiring the TORI tokens, the trader distributed them across multiple addresses. This quick dispersal, coupled with the rapid appreciation in the value of the tokens, prompted allegations of insider trading. Observers on X (formerly Twitter) and other social platforms pointed out that the similar behaviors of these addresses likely indicate they are controlled by a single entity.
Sure he is an insider!
Hundreds not to say thousands of coins are launched everyday!
We cant know which coin will pump.
Even if we blind ape on every launch it cant be 345 SOL per coin kek🤣🤣
I just hope they are reliable and wont dump!
— Gems Aristocrat (@GemsAristocrat) April 28, 2024
Despite the eye-watering paper value of $2 million, the trader faces significant hurdles in converting these unrealized gains into actual cash. The primary obstacle lies in the liquidity—or lack thereof—associated with the TORI token.
TORI is not fully recognized by Raydium, a decentralized exchange on the Solana platform where the tokens were purchased. The exchange only identifies the token by its mint address and has limited liquidity available for swaps—6,466.24 SOL and 93.65 million TORI in its pool. This bottleneck makes it not only challenging but currently impossible to liquidate the entire $2 million without significantly impacting the token’s price, potentially erasing the gains altogether.
This event serves as a stark reminder of the very high level of risk associated with trading meme coins and other low-liquidity tokens. Unlike more established cryptocurrencies like Bitcoin and Ethereum, these assets can exhibit extreme volatility and may present liquidity issues that complicate profit realization. Traders need to exercise heightened caution and have a deep understanding of market mechanics before engaging in such massively speculative investments.
Featured Image via Unsplash
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