As an experienced financial analyst, I strongly believe that the actions taken by Khamzat Chimaev’s team regarding the launch of their Solana-based memecoin, Smash (SMASH), are unacceptable and damaging to their reputations. The insider trading and price manipulation allegations, as exposed by onchain investigator ZachXBT, have resulted in significant consequences for the project.
Khamzat Chimaev, the well-known mixed martial artist and UFC contender, recently introduced a Solana memecoin named Smash (SMASH) to the public. Nevertheless, this project has raised concerns due to allegations of insider trading and potential price manipulation.
Based on the findings of on-chain analyst ZachXBT, approximately 78% of the total SMASH token supply is held by insiders and developer-connected wallets, raising red flags for potential investors.
As a researcher conducting an in-depth investigation, I discovered that ZachXBT pointed out a significant issue in a July 4 analysis. Specifically, he noted that Chimaev’s team connected their team wallets to insider wallets, making it evident of insider trading activity.
It has been revealed that over 71% of the insider and development team wallets are linked, buying up 78% or more of the coin supply. This action instantly raises suspicions and severely damages your team’s reputation, as it bears striking resemblance to meme coin scams.
— ZachXBT (@zachxbt) July 4, 2024
After these disclosures, the token’s value took a significant hit, decreasing by more than 91% from its peak of 0.01 SOL or roughly $0.016 to around 0.004 SOL (approximately $0.53 per token).
As an analyst, I have closely examined ZachXBT’s findings, and they point to a significant transaction on July 2nd. The wallet associated with the SMASH development team received 0.5 Ether. Subsequently, this Ether was transferred to Binance. With the funds from Binance, the SMASH team acquired a notable amount of Solana (SOL), specifically 11.83 coins.
I recently transferred an additional 3.825 Ether to SideShift for conversion into SOL tokens. This transaction resulted in 86.55 Solana (SOL) coins being sent to a wallet identified as insider. Subsequently, these SOL tokens were distributed among 24 different recipients. Together, these addresses purchased approximately 712 million Smash (SMASH) tokens, accounting for around 71.2% of the entire supply.
The tokens were spread across multiple recipients as a standard practice to reduce the apparent clustering of ownership and conceal potential market manipulation. ZachXBT voiced his criticism towards Chimaev’s team for their allegedly unprofessional conduct, highlighting the potential harm to their reputation from participating in such questionable activities.
The probe highlights the potential dangers of investing in memcoins and emphasizes the necessity of openness and responsible handling to preserve faith among investors. The disclosed information functions as a warning for other famous individuals considering involvement in the crypto industry.
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2024-07-04 17:08