Insider Trading Allegations Rock $BAKED Token Launch on Solana’s DegenFund

• On July 1, 2024, Lookonchain, a blockchain analytics platform, released a significant analysis concerning insider activities tied to the $BAKED token launch via DegenFund.
• DegenFund is known for facilitating new token launches on the Solana blockchain and caters to high-risk investors looking for high-reward opportunities.
• A notable finding from Lookonchain was the identification of coordinated transactions that suggest possible insider trading during $BAKED’s launch.

Discover the intriguing case of the $BAKED token on DegenFund, highlighting suspected insider trading and unprecedented gains in the crypto world.

Unveiling the $BAKED Token Launch on DegenFund

On the Solana blockchain, DegenFund has carved out a niche for itself by providing an accessible platform for creating and launching new tokens. Targeting “degen” investors—enthusiasts who thrive on high-risk, high-reward ventures—DegenFund simplifies token creation to mere seconds without pre-sales or team allocations, ensuring transparent and fair launches.

Mechanics and Utility of the BAKED Token

The BAKED token, a pivotal element within the DegenFund ecosystem, serves as a governance and participation tool for its community. Token holders can engage in the platform’s decision-making by voting on proposals and staking BAKED to earn rewards. Additionally, these tokens are utilized for certain fees and services, thus incentivizing users to contribute to the platform’s growth and sustainability.

Lookonchain’s Revelations: Understanding Insider Activity

Lookonchain’s meticulous analysis reveals a series of intriguing transactions that denote potential insider trading. During the $BAKED token minting, the developer’s wallet spent 11.82 SOL to acquire 300.72 million tokens, simultaneously adding 206.9 million tokens to liquidity. Interestingly, within a span of one second, 19 wallets secured the remaining 492.37 million tokens, signaling coordinated activity.

Linking Developer Wallets and Insider Claims

Critically, three of these 19 wallets were synchronized with the developer wallet and funded via Bitget, a renowned cryptocurrency exchange. This connection strongly indicates these wallets are developer-controlled. The remaining wallets also demonstrate coordinated actions, having withdrawn SOL from Bitget three days before the token launch, suggesting insider knowledge of the event.

Financial Implications and Market Impact

In total, these wallets spent 82.74 SOL (approximately $11.7K) to accumulate 779.85 million BAKED tokens, valued around $15.6 million, representing 78% of the token’s total supply. Despite selling a minor portion, these wallets hold 763.8 million BAKED tokens, equating to 76.38% of the total supply, emphasizing a significant concentration of control.

The Sniper’s Unprecedented Profit

Lookonchain’s analysis also uncovered a remarkable trade by an individual referred to as a “sniper,” who spent 70 SOL to acquire 81.78 million BAKED tokens from Raydium’s pool. Within 30 minutes, this individual offloaded the tokens, amassing 21,511 SOL ($3.05 million) in profit, yielding an extraordinary 307x return. Notably, there was no evidence suggesting this sniper was an insider, indicating a serendipitous transaction.

Conclusion

The $BAKED token launch on DegenFund, and the subsequent transactions analyzed by Lookonchain, highlight potential insider activities and underscore how information can majorly influence market dynamics. While some traders achieved remarkable gains, the high concentration of tokens among a few wallets raises questions about market fairness and the ethical landscape of cryptocurrency trading. Moving forward, such analyses are crucial for promoting transparency and trust in the evolving crypto ecosystem.