A wallet incurred a loss of $477,000 by engaging in insider trading before the official announcement of the NYC token in New York City.
AI Summary1 min read
TL;DR
A wallet lost $477,000 in insider trading before NYC token's announcement, briefly gaining profits but selling late after a price drop. The token's market cap hit $600M, then fell 70% when the team withdrew funds.
Tags
NYCCoinYinsider tradingNYC tokencrypto lossmarket manipulationwallet security
According to Mars Finance, citing data from Bubblemaps cited by CryptoFearless, a wallet incurred a $477,000 loss by engaging in insider trading before the official announcement of the New York City token NYC. After NYC's launch, its market capitalization surged to $600 million, but the team subsequently withdrew $2.5 million worth of USDC from the pool, causing the price to plummet by 70%. There was a 20-minute window for insider trading between the pool's deployment and the NYC token announcement. One wallet bought in 10 minutes before the announcement, briefly gaining $250,000 in unrealized profits, but due to holding the token for too long and panic selling, incurred a $477,000 loss.