MAGA token sell-off traced to MEV bots contradicting the claims that an insider sold MAGA tokens worth over $1 million.
Lookonchain, a blockchain analysis X account, reports that “an insider” has been selling nearly 80 billion tokens for 320 Ether, or $1.05 million, on the politically-themed memecoin MAGA.
The purported insider acquired 140.4 billion MAGA tokens (33.37% of the total supply) using 22 wallets for a mere 5.35 Ether (ETH) for $3,773 (approximately $20,000). Among the 140.4 billion MAGA in circulation, the purported insider retains approximately 60 billion tokens with a combined value exceeding $9 million.
On the other hand, new information indicates that the transactions were the product of maximal extractable value (MEV) automated activity instead of “insider” trading.
Dominium (@RootkitAlpha), an X user, observed that the transactions emphasized by Lookonchain exhibit attributes associated with MEV bot operations—namely, the exploitation of arbitrage opportunities to generate substantial MAGA profit margins.
As of publication, Lookonchain and Dominium had yet to respond to Cointelegraph’s request for comment.
Looking for a response concerning the involvement of MEV bots, Dominium confronted Lookonchain with the following:
“So nothing to say now? Why making fud about transactions from a MEV BOT, that you even can see it and you call yourself lookonchain and you don’t get nothing about this bro? I’m waiting…”
In support of their claim, Dominium additionally provided visual representations that illustrated a more comprehensive analysis of the transactions.
Lookonchain encountered substantial criticism from the community due to the initial X post, wherein numerous users doubted the blockchain analysis account’s credibility. The subsequent narrative shift prompted discussions regarding market manipulation and cast doubt on the initial allegations of insider trading.
MAGA, an acronym for the “Make America Great Again” slogan endorsed by Donald Trump, recently experienced a value surge following his pro-cryptocurrency remarks. When asked if individuals could contribute to his campaign using cryptocurrencies, Trump replied, “I believe the answer to be affirmative. I will guarantee that you can achieve the impossible.”
Notwithstanding the recent surge in the prominence of memecoins, their exorbitant volatility and inherent dangers persist, as exemplified by the breach encountered by the memecoin creation platform pump.fun. The former employee, currently out on parole in the United Kingdom, asserts that they were arrested due to the alleged $1.9 million fraud.
