Smash Token Insider Allegations Rock Khamzat Chimaev’s $SMASH

According to on-chain investigator ZachXBT, the fact that insiders and developer wallets own the majority of Khamzat Chimaev’s Smash (SMASH) cryptocurrency has raised insider trading concerns for yet another celebrity meme coin.

Launched by well-known mixed martial artist and UFC challenger Chimaev, Smash is a memecoin rooted in Solana.

An examination by the well-known on-chain investigator revealed that insiders and wallets connected to developers purchased up to 78% of the Smash token supply, raising worries about price manipulation. In a post for July 4 X, ZachXBT stated:

“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?”

According to Dexscreener data, the Smash token dropped more than 91% on the last day to trade over 0.004 Solana SOL, or $0.53 per token, from its peak of 0.01 SOL.

ZachXBT’s review indicates that insider wallets financed by the same Ethereum address that paid the Smash token’s developer address on Solana account for at least 71% of the supply.

“Using timing analysis confirms 71% insider and dev team wallets are directly linked as they were funded by same address on Ethereum.”

Funding for the 24 locations came from 86.2 SOL or $11,500 in total. According to ZachXBT, these same addresses have purchased 712 million Smash tokens or 71.2% of the total supply.

Although some see the introduction of celebrity meme coins as a sign of widespread adoption, the industry’s reputation is being harmed by these celebrity tokens’ infamously bad market performance.

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Most celebrity-backed meme coins, including JENNER, DAVIDO, and RICH meme tokens, dropped at least 66% in their first week of trading.

After American musician Jason Derulo declared that he “WILL NEVER SELL,” analytics company Bubblemaps asserted that the singer had sold thousands of dollars worth of his JASON token at the end of June, adding more controversy to the singer’s token.

The controversial former kickboxing champion Andrew Tate established the Daddy Tate (DADDY) meme coin, which was similarly impacted by claims of insider trading made by Bubblemaps in a June 12 X post:

“Insiders bought 30% of the supply at launch before Andrew Tate started to promote it on X.”

Smash Token Insider Allegations In A Nutshell  

The main issue is that many influencers and celebrities don’t thoroughly understand the cryptocurrency industry. Rather than having a sincere belief in the ideas, their recommendations are frequently motivated by profitable deals. This creates a situation where the stars dupe investors they deem credible, leaving them in a difficult financial situation.

Although there are some problems associated with the current wave of celebrity meme currencies, it is also possible that it will bring Bitcoin to the attention of a wider audience. Celebrity engagement could result in a greater understanding and adoption of crypto assets, provided they are managed properly. However, for this potential to be realised, the market must first address the existing problems and ensure that investors are sufficiently safeguarded.

In conclusion, celebrity meme coin news sheds light on the double-edged sword of influencers’ involvement in cryptocurrencies. Even though it generates excitement and attention, it also reveals the market’s vulnerabilities. The cryptocurrency community can manage these problems and build a safer and more dependable market for all investors if it increases its transparency, education, and attentiveness.