The cryptocurrency Smash (SMASH), based on the Solana meme coin, is undergoing a thorough investigation due to suspicions of insider trading, as highlighted by the on-chain investigator ZachXBT.
The majority of SMASH tokens, up to 78%, are held by wallets connected to insiders and developers, raising concerns about price manipulation.
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?
Summary:
Using timing analysis confirms 71% insider and dev team wallets is…
pic.twitter.com/0mVYvAofYE
— ZachXBT (@zachxbt)
July 4, 2024
ZachXBT’s analysis revealed that these wallets closely associated with the development team have purchased a significant portion of the token supply. In a post on July 4th, ZachXBT criticized Chimaev’s team for their incompetence, pointing out that they have directly linked the team wallets with the wallets of insiders, who together have purchased over 78% of the token supply.
The impact of these insider activities was significant, with the price of the SMASH token plummeting over 91% in a day, trading at approximately $0.53 per token, which is a decline from its all-time high of $0.01, according to Dexscreener data.
The substantial holdings by insiders mean that they can drastically influence the price of the cryptocurrency by selling large quantities at once.
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ZachXBT further clarified that at least 71% of the token supply can be traced back to wallets of insiders funded from the same address on Ethereum that financed the developer’s Solana address.
The investigation identified 24 addresses funded with 86.2 SOL (worth $11,500), which were used to purchase 712 million SMASH tokens, representing 71.2% of the total supply. Subsequently, these tokens were distributed among smaller addresses.
