Crypto currency Smash (SMASH), based on Solana and created by Hamzat Chimaev, is under rigorous scrutiny due to suspicions of insider trading, as highlighted by on-chain investigator ZachXBT.
The majority of SMASH tokens, up to 78%, are held by wallets associated with insiders and developers, raising concerns of price manipulation.
ZachXBT’s analysis revealed that wallets closely linked to the development team purchased a significant portion of the token supply. In a post on July 4th, ZachXBT criticized Chimaev’s team for incompetence, pointing out their direct linking of team wallets with those of insiders, who collectively acquired over 78% of the token supply.
These internal activities had a profound impact, with the price of SMASH plummeting over 91% in a single day, trading at approximately $0.53 per token, down from its all-time high of $0.01, according to Dexscreener data.
The substantial holdings by insiders mean they have the potential to significantly influence the cryptocurrency’s price by selling large quantities at once.
Read more:
Andrew Tate’s cryptocurrency surges 30%
Additionally, ZachXBT specified that at least 71% of the token supply can be traced to wallets funded from the same Ethereum address that financed the Solana developer’s address.
The investigation identified 24 addresses funded with 86.2 SOL (worth $11,500), which purchased 712 million SMASH tokens, representing 71.2% of the total supply. Subsequently, these tokens were distributed among smaller addresses.
