The revitalized crypto markets and the launch of millions of new cryptocurrency projects have given adventurous investors ample opportunity to try their hand at quickly making millions out of just hundreds or thousands of dollars.
On July 1, such a feat was accomplished by a trader who spent 70 Solana (SOL) – worth just under $10,000 – to purchase almost 82 million of a new cryptocurrency called BAKED.
Just 30 minutes later, the very same trader sold it all for 21,581 SOL, meaning they made more than $3 million of the original $10,000 in less than one hour.
The timing of the BAKED trade. Source: Lookonchain
The blockchain analysis platform Lookonchain, which tracked the trade, concluded that it is likely the investor is not a project insider but simply got lucky given that they made three similar attempts in the past, losing money on two.
This trade constitutes an example of cryptocurrency sniping – a strategy that involves buying a token as soon as possible, frequently just as it becomes available for trading. Generally, the strategy is executed through the use of a trading bot.
The mixed launch of BAKED
The launch of BAKED was also marked by significant insider activity as Lookonchain determined that some 800 million tokens were snatched in approximately one second – about one-half by the developer wallet.
The blockchain investigation platform also concluded that it is likely that 15 out of the 19 addresses involved belong to the very same insider, as they withdrew the used SOL from the cryptocurrency exchange Bitget three days before BAKED was launched.
In total, the developer and insider wallets are estimated to have purchased as much as 78% of the total BAKED circulating supply and, even after some selling, still hold approximately 76%.
Baked was launched on the DegenFund and, partially due to getting sniped, the launch was marred by several accusations of manipulation leading to its official X page making several posts in which it claims the launch was fair.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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