As users suspect insider trading, a trader earned several hundred thousand dollars on an unknown token called DizzyHavoc.
An unknown trader made a profit of 69.6 Ethereum (ETH), the equivalent of $225,700, on the new DizzyHavoc (DZHV) token in a couple of days. Lookonchain analysts drew attention to this case.
On Feb. 26, the trader spent 0.2 ETH to buy 6.47 million DZHV and sold it for 69.8 ETH.
— Lookonchain (@lookonchain) February 28, 2024In just 2 days, this trader made 69.6 $ETH($225.7K) with only 0.2 $ETH($635).
He spent 0.2 $ETH($635) to buy 6.47M $DZHV on Feb 26 and sold it for 69.8 $ETH($226.4K).$DZHV was launched on Jan 29 but has seen almost no trading volume.
Coincidentally, right after this trader… pic.twitter.com/fJUto8MZZm
DZHV was launched on Jan. 29, but trading volume remained low. However, within two days of the trader’s purchase, the token suddenly jumped 82%.
At the time of writing, the price of DZHV is $0.06464, down by 16% in the last 24 hours, according to CoinMarketCap. The daily trading volume is estimated at $17.89 million. Currently, the coin is traded only on the decentralized exchange (DEX) Uniswap, and the CoinMarketCap website indicates that the token is not verified.
Due to the ambiguity of the transaction, X users commented on the Lookonchain post and suggested that a developer or another DZHV insider could be behind the unknown trader.
At the same time, cases of traders getting rich on little-known tokens are increasingly attracting the attention of analysts. Last week, another unknown trader made a 1,280x profit, taking advantage of the hype around the announcement of OpenAI‘s generative neural network for video, Sora. The trader earned $176,000 by investing only $137.