Massive Gain in Solana-Based Cryptocurrency Raises Questions of Insider Trading
A trader made a colossal gain by sniping $BAKED tokens, earning 21,511 $SOL (approximately $3 million) in just 30 minutes, a return of 307 times the initial investment. This event unfolded in the volatile environment of decentralized finance platforms.
The trader capitalized on purchasing $BAKED tokens not through the initial offering on ‘DegenFund’ but directly from Raydium’s liquidity pool. With an investment of 70 $SOL ($9,923), the trader acquired 81.78 million $BAKED and sold them for 21,581 $SOL ($3.06 million). Before this successful trade, the sniper had engaged in transactions involving three other tokens, incurring losses in two.
Insider Control and Token Allocation
Investigations reveal that a significant portion of $BAKED tokens, 76.38% of the total supply, amounting to 763.8 million tokens, remains under the development team’s and insiders’ control. These tokens were initially bought for a mere 82.74 $SOL ($11.7K) and are now valued at approximately $15.6 million.
Upon the launch of $BAKED on ‘DegenFund,’ the developer wallet was noted for purchasing many tokens at the minting stage. This was followed by a rapid acquisition of 492.37 million $BAKED by 19 wallets within just one second. Of these, three wallets, suspected to be linked to the developer due to simultaneous creation and funding patterns, along with 15 others, appear to be controlled by insiders associated with the development team.
