In an eye-opening turn of events, a group of around 15 wallets, believed to be linked to insiders, secured over 60.5% of the total FOCAI token supply ahead of its launch, yielding stunning returns of more than 136,000 times their initial outlay.
These wallets collectively made more than $20 million during the debut of the memecoin on Solana’s launchpad, Pump.fun.
Insider Investments and Returns
Data from Lookonchain, a blockchain analytics firm, reveals these insiders initially invested roughly $14,600 to grab a substantial chunk of FOCAI tokens.
After the launch, they capitalized on their holdings, converting their investments into a staggering 94,175 SOL, which is approximately $20.5 million, resulting in a net profit of around $20.48 million.
The dramatic concentration of FOCAI tokens within a small number of addresses has raised red flags among experts concerning the potential threats to decentralization, a core value in the crypto space.
Market Fluctuations and Standout Wallets
At its zenith, FOCAI’s market capitalization soared to more than $46 million shortly after debuting.
However, by 11:55 am UTC, this number dipped nearly 14%, settling at around $39.6 million, as reported by data from Pump.fun.
One standout wallet, tagged as “9DtTb,” made headlines by generating a jaw-dropping $3.47 million in profit within a mere three hours.
According to the Onchain Lens dashboard, this wallet purchased an impressive 123.32 million FOCAI tokens for only 5.39 SOL (around $1,168), later flipping them for an astonishing 16,070 SOL—a staggering profit ratio of nearly 2,973 times the initial investment.
The Reality of Memecoins
While memecoins are often criticized for their lack of practical use, they continue to yield significant profits for a fortunate few.
For example, just last December, a savvy crypto trader transformed an initial investment of $27 into a whopping $52 million by riding the wave of the Pepe token, achieving an astronomical return of over 1.9 million times.
On the flip side, most traders diving into memecoins face losses.
Statistics paint a sobering picture: over 99% of Pump.fun participants either failed to turn a profit or earned less than $1,000.
Out of the nearly 9.8 million wallets scrutinized, only 50 managed to see returns of up to $1,000, while just five wallets reported gains ranging from $1,000 to $10,000.
Only one wallet managed to break away with profits exceeding $10,000.
As the dust settles on the FOCAI launch, it serves as a potent reminder of the challenges and opportunities that define the unpredictable world of cryptocurrency, where fortunes can shift dramatically in the blink of an eye.
Source: Cointelegraph
