From Cointelegraph

March 22, 2025 10:01 AM:

An unknown trader made over $482,000 in profit from the Bubb memecoin before it lost half its value, sparking insider trading allegations. The trader turned a $304 investment into a 1,500-fold return in less than 24 hours. The token’s market cap dropped from $43.7 million to $22.6 million currently.

The Bubb token received attention after Binance’s Yi He commented on it, hinting at a potential listing. The profitable trade happened before the token lost over 50% of its value. Insider trading allegations arose due to the trader’s massive return. This incident comes after the Wolf memecoin crashed 99%.

Hayden Davies’ Wolf memecoin reached a $42 million market cap, but 82% of the token’s supply was held by one entity. Davies launched the token on rumors of Jordan Belfort creating his own token. The Libra token’s collapse led to $107 million being cashed out by insider wallets, causing a $4 billion market cap wipeout.

Politically-backed memecoins like Libra need stronger investor protection mechanisms to prevent future meltdowns. Tokens with presidential endorsements should have more safety measures like liquidity locking and restrictions on participation to deter insider trading. The Libra scandal resulted in 74,698 traders losing $286 million in total.

The Bubb memecoin trader’s massive profit and the subsequent collapse of the token have raised concerns about insider trading in the memecoin market. The Wolf memecoin crash and the Libra token collapse due to insider activity highlight the need for stricter regulations and protections for investors in the crypto space.

Read more at Cointelegraph: Trader nets $480K with 1,500x return before BNB memecoin crashes 50%