Crypto Trader Converts $285 to $627,000 Amid Insider Trading Concerns

An anonymous trader turned a $285 investment into $627,000 by trading the memecoin ZREAL. This has raised suspicions of insider trading.

Lookonchain identified four wallets linked to this activity, labeling the trader as an "insider" of the pump.fun memecoin ZREAL.
The trader initially bought 66.3 million ZREAL, later selling 19.98 million for $210,000. Remaining holdings are 46.3 million ZREAL, valued at $417,000.

Insider Trading and Sniping in Memecoins

"Sniping" is a term used for this type of insider trading, where insiders use bots to buy tokens before public availability, then sell them at higher prices.
Pumpfun facilitates this practice, attracting buyers to newly launched memecoins, increasing risks of the "Greatest Fool Theory."
Institutional interest in crypto persists, with NYSE exploring tokenized securities platforms, following Nasdaq's similar initiatives.