The Ethereum ETH/USD-based $dogwifhat yielded a few fresh wallets a profit of $1.78 million - from an original investment of only $3,694. But the execution of the trade may indicate insider trading.
What Happened: On Feb. 3, 12 fresh wallets purchased $dogwifhat in the same Uniswap block as the deployer initiated trading. Notably, these wallets were created just one day before the trade.
The wallets generated a profit of 771.86 Ethereum, equivalent to $1.78 million, from an initial investment of only 1.6 Ethereum, valued at $3,694, according to Lookonchain data. The transaction involved the acquisition of 24 million WIF and the sale of 15.34 million WIF. Currently, these wallets retain 8.65 million in dogwifhat, valued at around $838,000.
It's noteworthy that these insiders started trading the meme token 12 minutes before other users who missed out on these significant gains.
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Why It Matters: The $dogwifhat token on Ethereum is a copy of the eponymous WIF token on Solana SOL/USD.
On Feb. 3, following a publicity stunt by the Solana-based Dogwifhat community, Issa, a Fornite streamer, outed himself as the original creator of the dogwifhat meme.
Issa tweeted, “With so many of you reaching out to me and the $WIF team never acknowledging me as the original creator I wanted to clarify that I have no affiliation with them and never owned or received any allocation.”
He proceeded to launch the "REAL $dogwifhat on Ethereum," with the token's value surged from a penny to 30 cents before questions about ownership of the original meme emerged.
The on-chain evidence for potential insider trading could further fuel the discussion about the legitimacy of the Ethereum-based version of the popular dog meme.
What’s Next: WIF, the Dogewifhat token on Solana, has been tipped to rival Dogecoin DOGE/USD and Shiba Inu SHIB/USD. However, the memecoin failed to sustain its short-term momentum and is down 30.5% over the past week.
The new development could fuel discussions about potential 'pump and dump' scenarios fby insiders in the ongoing meme coin frenzy.
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Image: Pixabay
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