A remarkable trade has recently captured the attention of market analysts and enthusiasts, shining a light on potential market manipulation and its consequences.
This particular case involved an individual who made a profit of $2.9 million in under 20 minutes by using the cryptocurrency SOL to engage in transactions related to the token WATER. This event has sparked conversations among traders and investors about the impact of such actions on market transparency and investor trust.
According to Lookonchain, a blockchain analytics platform, the sequence of events unfolded rapidly. The trader in question created a new wallet and transferred funds from Bybit, a well-known cryptocurrency exchange. Shortly after, the individual purchased 612.23 million WATER tokens, which represented 22.71% of the token’s total pooled liquidity.
The transaction was strategically timed to coincide with the moment liquidity was added to the market by the token’s deployer. The timing and volume of the transaction indicate a calculated move to take advantage of market conditions before selling the acquired tokens for a substantial profit.
Furthermore, Lookonchain’s findings have also highlighted the Watercoin development team’s involvement in removing negative comments on Bitcointalk, raising questions about their activities.
After the large transaction, the WaterCoin team transferred 844.44 million of the current total supply of 5 billion WATER tokens to 11 new wallets. These wallets, which did not participate in the token’s presale, began selling WATER tokens and collectively obtained around 18,600 SOL (~$2.35 million).
These activities have raised concerns about the motives and integrity of the team behind cryptocurrency projects. The spreading of tokens into multiple new wallets, along with the immediate selling of these assets, suggests a lack of genuine interest in the long-term success of the project or, potentially worse, a scheme to benefit those at the top at the expense of the average investor.
The WaterCoin case and its associated transactions emphasize the need for increased vigilance and regulatory oversight in the cryptocurrency markets. While blockchain technology provides unparalleled transparency, the speed and anonymity of transactions can be exploited for manipulative practices.
