An Unknown Trader Made Nearly $500K Profit Dumping Bubb (BUBB) Memecoin Before Its Price Crashed

The profitable trade occurred shortly before the token lost over 50% of its value, from a peak that rose to a peak $43.7 million market capitalization on March 21 at 10:00 p.m. UTC

An unknown trader made nearly half a million in profit on a recently launched memecoin just before the token lost half of its value, sparking insider trading allegations.

The trader made an over 1,500-fold return on his initial investment, which amounted to $304, which was used to purchase 43.94M Bubb (BUBB) tokens.

The trader sold 28.9M BUBB tokens for $122K, which left him with 15.64M BUBB tokens and $360K, according to blockchain analytics firm Lookonchain.

The profitable trade occurred shortly before the token lost over 50% of its value, from a peak that reached a $43.7 million market capitalization on March 21 at 10:00 p.m. UTC, to the current $22.6 million,

The Bubb token started receiving significant investor attention on March 20, after Binance co-founder and chief customer service officer, Yi He, commented on one of the token’s posts — a move that was interpreted by traders as a sign of a potential token listing on the world’s largest exchange.

The Bubb token is heating up 🔥🔥🔥

Recently, Binance co-founder Yi He chatted with Bubb in the comment section.

Bubb is a new memecoin that started on March 15 and now has a market cap of $43M. It seems like it will be listed on Binance soon.

The Bubb token started receiving significant investor attention on March 20, after Binance co-founder and chief customer service officer, Yi He, commented on one of the token’s posts — a move that was interpreted by traders as a sign of a potential token listing on the world’s largest exchange.

The unknown trader’s over 1,500-fold return sparked insider trading allegations among market participants.

“Can you tag these kinds of posts with ‘insider’ so I can mute all of those, I rather be naive about it,” replied pseudonymous crypto investors fhools, to Lookonchain’s X post.

The profitable trade comes a week after Hayden Davies’ Wolf of Wall Street-inspired memecoin crashed 99%, showing signs of significant insider activity ahead of the token’s collapse.

Davis launched the Wolf (WOLF) memecoin on March 8, banking on rumors of Jordan Belfort, known as the Wolf of Wall Street, launching his own token.

The token reached a peak $42 million market cap. However, 82% of the WOLF token’s supply was bundled under the same entity, according to a March 15 X post by Bubblemaps,

Related: Crypto debanking is not over until Jan 2026: Caitlin Long

Davies’ latest token launch comes weeks after the Libra token’s collapse, where eight insider wallets cashed out $107 million in liquidity, leading to a $4 billion market cap wipeout within hours.

The Libra token turned into a political issue, with Argentine President Javier Milei risking impeachment after his endorsement of the Libra coin.

Related: Milei-endorsed Libra token was ‘open secret’ in memecoin circles - Jupiter

Politically-backed memecoins need stronger investor protection guardrails

To avoid another meltdown similar to Libra’s, tokens with presidential endorsements will need more robust safety and economic mechanisms, such as liquidity locking or making the tokens in the liquidity pool non-sellable for a predetermined period, DWF Labs wrote in a report shared with Cointelegraph.

The report stated that tokens from high-profile leaders would also need launch restrictions to limit participation from crypto-sniping bots and large holders or whales.

“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,” according to Andrei Grachev, managing partner at DWF Labs:

Source: DWF Labs

The Libra scandal resulted in 74,698 traders losing a cumulative $286 million worth of capital, according to DWF Labs’ report.

Milei faces impeachment calls from his political opponents after endorsing the cryptocurrency that underwent a total rug pull.