YEREVAN (CoinChapter.com) — At least 15 insider wallets on the Solana blockchain made a $20 million profit during the launch of the Focai memecoin on the Pump.fun platform. These wallets invested $14,600 and acquired 60.5% of the FOCAI token supply, according to data from Lookonchain.
The insiders sold their holdings for 94,175 SOL, valued at $20.5 million, after the token’s price surged.
“They sold all their $Focai, netting 94,108 SOL ($20.48M),”
Lookonchain reported. The rapid profit from the Focai memecoin raises concerns about the fairness of cryptocurrency markets.
Focai Token’s Market Cap Drops After Peak
The FOCAI token hit a market capitalization of $46 million at 4:45 am UTC, as shown by data from the Pump.fun platform. However, the token’s market cap later fell 14% to $39.6 million by 11:55 am UTC. Analysts noted the concentration of token ownership among a small group of wallets, a structure that may undermine principles of decentralization.
Decentralization is often considered a key feature of blockchain projects. The Focai memecoin case highlights how large token allocations to a few wallets can skew market outcomes.
Individual Wallet Earns $3.5 Million in Hours
One wallet, labeled “9DtTb,” recorded a profit of $3.5 million within just three hours. Onchain data shows that this wallet purchased 123.32 million FOCAI tokens for 5.39 SOL (approximately $1,168) and sold them for 16,070 SOL, valued at $3.47 million.
Onchain Lens, an analytics firm, detailed the transaction:
This example demonstrates the scale of profits possible for early token buyers in Focai memecoin launches.
Pump.fun Platform: Few Profitable Traders
The majority of traders on the Pump.fun platform faced losses. Data from Dune Analytics revealed that over 99% of wallets either lost money or made less than $1,000 in profit. Out of 9.8 million wallets, only 50 wallets earned up to $1,000, while just five wallets generated between $1,000 and $10,000.
Despite the large profits for insider wallets, only one wallet earned more than $10,000, further illustrating the limited profitability for most participants.
