$480K profit sparks insider claims in BNB memecoin crash

A trader’s extraordinary $480,000 profit from the Bubb (BUBB) memecoin—achieved through a 1,500x return before the token crashed 50%—has reignited debates about insider trading in crypto markets.

The transaction, flagged by blockchain analytics firm Lookonchain, involved purchasing $304 worth of BUBB tokens and selling them for $482,000 in under 24 hours, leaving remaining holdings valued at $360,000.

The memecoin surged after Binance co-founder Yi He commented on a BUBB social media post, sparking speculation about a potential exchange listing.

By March 21, BUBB’s market cap peaked at $43.7 million before plummeting to $22.6 million, according to Dexscreener data. 

“Turned $304 into $482K on $BUBB—a 1,586x return! This trader spent only $304 to buy 43.94M $BUBB and sold 28.9M $BUBB for $122K, leaving 15.64M $BUBB ($360K),” Lookonchain detailed in the trade.

Allegations of insider information were raised by the trader's timing, as they sold prior to the crash.

“Can you tag these kinds of posts with ‘insider’ so I can mute all of those, I rather be naive about it,” pseudonymous investor fhools responded to Lookonchain’s post, urging clearer labeling of such transactions.

The incident follows recent high-profile collapses, including Hayden Davies’ Wolf (CRYPTO:WOLF) token, which lost 99% of its value after launch.

Bubblemaps revealed that 82% of WOLF’s supply was controlled by a single entity, raising concerns about centralised ownership.

Similarly, the Libra token’s $4 billion collapse in January—linked to Argentine President Javier Milei’s endorsement—resulted in $286 million in losses for 74,698 traders, per DWF Labs.

DWF Labs emphasised the need for liquidity locking and anti-bot measures to prevent memecoin manipulation.

“Limiting bot and whale activity is essential in limiting the impact of individuals acting on insider information to corner a large percentage of the token supply,” managing partner Andrei Grachev stressed.

Milei’s endorsement of Libra, which became a political scandal, underscores challenges in balancing celebrity-backed tokens with investor protection.

DWF Labs advised stricter launch protocols, including restrictions on large holders and liquidity pools, to ensure fair participation.