The distribution of Smash tokens raises insider trading concerns, adding another red flag to celebrity memecoins.
Most of Khamzat Chimaev’s Smash (SMASH) cryptocurrency is held by insiders and developer wallets, raising insider trading concerns for yet another celebrity memecoin, according to on-chain investigator ZachXBT.
Smash is a Solana-based memecoin launched by the popular mixed martial artist and UFC contender Chimaev.
Up to 78% of the Smash token supply was bought by insider and developer-related wallets, leading to price manipulation concerns, according to an analysis by ZachXBT. In a July 4 post on social media platform X, ZachXBT said:
“Khamzat, your team is incompetent as you directly linked the team wallets with the insider wallets buying up 78%+ of the supply. Why do all of you instantly nuke your reputation with meme coin scams?”
The Smash token fell over 91% in the past day, trading above 0.004 Solana ($0.53 per token), down from its all-time high of 0.01 SOL, according to Dexscreener data.
Insiders with large token holdings can single-handedly tank a cryptocurrency’s price by selling a significant percentage of their holdings on the market.
Summary Review: The allegations of insider trading surrounding Khamzat Chimaev’s Smash token have raised serious concerns about the integrity of celebrity-backed cryptocurrencies. With 78% of the token supply reportedly held by insiders and developer wallets, there is significant potential for market manipulation. The dramatic drop in the token’s value further underscores the risks associated with such investments. As the crypto market continues to grow, transparency and accountability will be crucial in maintaining investor trust and preventing similar controversies in the future.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
