Solana treasury firm DeFi Development Corp. launched an experimental meme coin called DisclaimerCoin on the Solana blockchain.
The firm became the subject of insider trading allegations after an early buyer acquired tokens before the public announcement.
DeFi Development Corp. said an “early sniper” bought around $4,000 worth of the DONT token, which later surged to a value of about $1m.
Blockchain data showed the trader accumulated roughly 29 billion DONT tokens, equating to nearly 7% of the total supply.
The purchases began around 25 minutes after the token was created and nearly an hour before the firm publicly announced the launch.
Following the public promotion, DONT briefly reached a market capitalisation of about $16.5m, generating large unrealised profits.
The trader later sold part of the holdings, realising more than $200,000 in gains before the balance declined.
On-chain analysts raised concerns over possible links between the sniper’s wallet and addresses connected to the firm.
“Fascinating behavior, the address that funded the profitable trader holds $30K of DeFi Dev Corp’s liquid staking token,”
Ian Unsworth said.
DeFi Development Corp. said it reviewed the launch and determined the address belonged to an early sniper.
“We conducted a swift and thorough review and identified the sniper,”
The firm said, adding it remained committed to transparency and integrity.
The company said it recovered more than 17 billion DONT tokens and about $200,000 worth of Solana from the trader.
The retrieved tokens were subsequently burned, removing them permanently from circulation.
Following confirmation of the burn, DONT surged by about 92% within an hour to a market capitalisation of roughly $35m.
At the time of reporting, Solana price was $128.26.