Concerns have emerged around UFC fighter Khamzat Chimaev’s token, SMASH, due to allegations of insider trading.
The SMASH token, based on the Solana blockchain, is predominantly held by insiders and developers, raising questions about potential price manipulation. According to on-chain investigator ZachXBT, 78% of SMASH tokens are controlled by wallets linked to the development team and insiders.
Market Impact and SMASH Price Drop
The SMASH token experienced a drastic drop of over 91% in just one day, falling from 0.01 SOL to approximately 0.004 SOL. This decrease is attributed to the high concentration of tokens in the hands of insiders, allowing a few individuals to control and manipulate the market by selling off their assets.
ZachXBT Analysis
ZachXBT’s analysis reveals that over 70% of the total supply of SMASH is directly linked to insider wallets funded by the same Ethereum address used to fund the developer’s address for the token on Solana.
These wallets were fueled with 86.2 SOL, equivalent to $11,500, and subsequently purchased 712 million SMASH tokens, accounting for 71.2% of the total supply. After the initial purchase, the tokens were redistributed to smaller addresses, complicating traceability and reinforcing suspicions of insider trading.
Impact of Celebrity Memecoins on the Crypto Industry
The launch of celebrity memecoins has sparked debates within the crypto community. While some see it as a sign of mainstream adoption, the poor performance of these tokens undermines the industry’s credibility.
For example, the majority of celebrity-backed memecoins, such as JENNER, DAVIDO, and RICH, have dropped 70-99% in value within the first week of their launch. Similar allegations of insider trading have also plagued Jason Derulo’s token and Andrew Tate’s memecoin Daddy Tate, further reinforcing concerns about the integrity of these projects.
