The popular mixed martial artist and UFC contender, Khamzat Chimaev, recently launched a Solana-based memecoin called Smash (SMASH). However, the project has already come under scrutiny for potential insider trading and price manipulation.
According to onchain investigator ZachXBT, up to 78% of the SMASH token supply is controlled by insiders and developer-related wallets, leading to significant concerns.
In a detailed analysis shared on July 4, ZachXBT highlighted that Chimaev’s team made critical mistakes by linking team wallets directly with insider wallets, as it clearly shows insider trading.
Following these revelations, the token’s price plummeted by over 91%, dropping from its all-time high of 0.01 SOL to just above 0.004 SOL (approximately $0.53 per token).
ZachXBT’s investigation provided clear evidence of these transactions. On July 2, a wallet linked to the SMASH dev team received funds from Ethereum. Specifically, 0.5 ETH was sent to Binance, which was then used to acquire 11.83 SOL for the SMASH dev team.
Another 3.825 ETH was sent to SideShift, converting to 86.55 SOL for an insider wallet. These SOL tokens were then dispersed to 24 addresses, which collectively bought 712 million SMASH tokens, representing 71.2% of the entire supply.
These tokens were further distributed among various addresses, a common tactic to obscure the concentration of holdings and disguise potential price manipulation. ZachXBT criticized Chimaev’s team for their incompetence, pointing out that their actions are damaging their reputations by engaging in such schemes.
The investigation underscores the risks associated with memecoins and the importance of transparency and proper management to maintain investor trust. The revelations serve as a cautionary tale for other celebrities and influencers looking to enter the cryptocurrency space.
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