According to the latest blockchain data from Lookonchain, a Solana insider allegedly converted a $600 investment into over $153,000 in just 15 hours while raising concerns about a potential “rug pull” scheme. The trader is also reported to be holding $2.5 million in unrealized profits from the suspicious transaction.
The allegations stem from an insider’s dealings with the Minette token, a new cryptocurrency affiliated with the VibeCat project on the Solana blockchain. According to the data, the insider initially withdrew 3.89 SOL tokens (worth around $600) from Binance before spending 2.89 SOL (around $445) to purchase 2.46 billion Minette tokens at the same block where the developer had provided initial liquidity.
Suspicions were raised when the insider allegedly sold 1.04 billion of the newly-acquired Minette tokens for 998.7 SOL, netting over $153,000 in just 15 hours while retaining 1.42 billion Minette tokens valued at a staggering $2.5 million.
Compounding concerns, reports indicate that the VibeCat developer did not burn the liquidity provider (LP) tokens for Minette, leading to fears of a potential “rug pull” where project developers abruptly abandon the project and run off with investors’ funds.
Analyst Jelle’s Bullish Stance On Solana (SOL)
Meanwhile, despite the controversy, the price of Solana’s native SOL token has continued its upward trajectory. At the time of writing, SOL is trading at $153.71 with a 24-hour trading volume exceeding $2 billion. The cryptocurrency has increased by 8.57% over the past day and an impressive 12% over the past week.
According to CoinMarketCap data, Solana is presently the fifth-largest cryptocurrency by market capitalization, valued at around $68 billion. Jelle, a prestigious analyst, is optimistic about SOL despite falling by 45% from the recent peak since it has found support on an important level and may rise toward $200 before touching new highs again. According to him, SOL represents his primary alternative coin holding after Ethereum.
Even as Solana forges ahead amidst insider trading controversies and “rug pull” alarms, investors continue to focus intensely on this high-flying blockchain, carefully considering the alluring potentials versus the ever-present risks associated with volatile crypto markets.
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