Market Manipulation Suspected as Crypto Trader Makes $2.9 Million Profit in 20 Minutes
A recent transaction in the cryptocurrency market has raised concerns about potential market manipulations and their consequences. This notable incident involved a trader who managed to generate a profit of $2.9 million in less than 20 minutes using the cryptocurrency SOL in transactions related to the token WATER. Traders and investors are now discussing the implications of such actions on market transparency and trust.
According to blockchain analytics platform Lookonchain, the sequence of events unfolded rapidly. The trader in question created a new wallet and transferred funds from the popular cryptocurrency exchange Bybit. Shortly after, the individual made a purchase of 612.23 million WATER tokens, which accounted for 22.71% of the token’s overall liquidity.
The transaction was carefully timed to coincide with the moment liquidity was added to the market by the token’s deployer. The precise timing and substantial volume of the transaction indicate a strategic move to take advantage of market conditions before selling the acquired tokens for a significant profit.
Further investigations by Lookonchain have revealed questionable activities by the Watercoin development team. Notably, the team is suspected of actively removing negative comments on Bitcointalk. Additionally, immediately after the large transaction mentioned earlier, the WaterCoin team transferred 844.44 million WATER tokens to 11 new wallets. Surprisingly, these wallets, which did not participate in the token’s presale, started selling WATER tokens from their total holdings of around 18,600 SOL (equivalent to approximately $2.35 million).
These findings raise doubts about the motives and ethics of the team behind cryptocurrency projects. The dispersion of tokens into multiple new wallets, followed by immediate selling, suggests a lack of commitment to the long-term success of the project. It also implies a possible scheme to enable those at the top to profit from high token prices at the expense of average investors.
The WaterCoin case and the associated transactions highlight the importance of increased vigilance and regulatory oversight in the cryptocurrency markets. While blockchain technology offers unprecedented transparency, the fast-paced and anonymous nature of transactions can be exploited for manipulative purposes.