Insider Trader Turns $285 Into $627,000 as ZREAL Memecoin Sparks Mini Frenzy

A trader who invested just $285 into the memecoin ZREAL early on reportedly walked away with gains of $627,000, highlighting renewed concerns around insider trading and memecoin manipulation. According to blockchain analytics platform Lookonchain, the trader is suspected to be an “insider” who acquired 66.3 million ZREAL tokens before the broader retail market piled in.

On-chain data shows the trader sold approximately 10 million ZREAL tokens for around $210,000, while still holding roughly 46.3 million tokens valued at about $417,000 in unrealized profits. Wallet activity indicates hundreds of market sell orders executed over a 10-hour window on Monday, suggesting a deliberate strategy to offload tokens gradually into rising retail demand.

Such behavior is commonly associated with so-called memecoin “snipers,” individuals who gain early access to a project before launch. Using automated bots, these traders buy tokens ahead of the public and later sell them on decentralized exchanges once prices spike, often leaving latecomers exposed to sharp losses. This practice became widely known in early 2025 after Hayden Davis discussed memecoin issuance tactics on a podcast with Coffezilla, claiming involvement in several high-profile tokens such as MELANIA and LIBRA.

Davis’ comments fueled debate around memecoins as tools for extracting liquidity from retail traders, reinforcing the perception of a largely unregulated and predatory market. While the explosive memecoin boom of last year has cooled, recent activity suggests a smaller resurgence may be underway.

The ZREAL token’s rise coincides with record activity on Pump.fun, a popular memecoin launch platform that reportedly saw daily trading volumes hit $1.2 billion earlier this month. Since launching on Sunday, ZREAL has attracted more than 7,000 followers on X and reached a 24-hour trading volume of $18 million.

Concerns about fraud remain persistent. A Solidus Labs report published last May alleged that 98% of tokens launched on Pump.fun were fraudulent, a claim the platform strongly disputed, arguing that the report misunderstood the nature of memecoins. Despite the controversy, ZREAL’s surge underscores how insider trading, speculation, and viral momentum continue to shape the memecoin market.