Scandal Hits Khamzat Chimaev’s Smash Token: Insider Trading Allegations Shake Markets
Khamzat Chimaev’s Smash (SMASH) cryptocurrency has come under scrutiny due to insider trading concerns, as highlighted by onchain investigator ZachXBT.
Smash, a memecoin launched on the Solana blockchain by the popular UFC fighter, reportedly has a significant portion of its supply controlled by insiders and developer-related wallets. ZachXBT’s analysis reveals that up to 78% of the Smash tokens were purchased by these insider wallets, raising alarms about potential price manipulation.
Impact of Insider Holdings: Smash Token’s Value Drops 91%
The token’s value plummeted by over 91% in recent trading, falling from its peak of 0.01 SOL to just above 0.004 SOL. This drastic drop has underscored the influence that large insider holdings can have on cryptocurrency prices, especially when significant amounts are sold off in the market.
Cointelegraph has reached out to Chimaev’s team for comment on these allegations.
Analysis by ZachXBT
According to ZachXBT’s investigation, a substantial portion of the token supply—specifically 71%—can be directly traced back to insider wallets. These wallets were initially funded by the same Ethereum address that financed Smash token’s developer wallet on Solana.
“Using timing analysis, we’ve confirmed that 71% of the supply is tied to insider and developer team wallets, all linked through the same Ethereum funding source,” ZachXBT stated.
The addresses associated with these insiders collectively purchased 712 million Smash tokens, equivalent to 71.2% of the total supply. After acquisition, these tokens were distributed among smaller addresses, as illustrated in ZachXBT’s detailed analysis.
Impact on the Crypto Industry
The rise of celebrity-backed memecoins like Smash has sparked both interest and concern within the crypto community. While some view their emergence as a positive sign of mainstream adoption, the volatile price actions and allegations of insider trading surrounding these tokens have cast a shadow on the industry’s reputation.
Similar controversies have plagued other celebrity memecoins, with many experiencing significant price declines shortly after launch. Tokens associated with celebrities like JENNER, DAVIDO, and RICH have all seen substantial drops in value, contributing to skepticism about the sustainability and integrity of such projects.
FAQ
What is Khamzat Chimaev’s Smash token?
Smash is a memecoin launched on the Solana blockchain by popular mixed martial artist and UFC contender Khamzat Chimaev.
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