TLDR
- UFC star Khamzat Chimaev launched a meme coin called SMASH on the Solana blockchain
- The token’s price crashed by over 90% shortly after launch
- Onchain investigator ZachXBT alleged that up to 78% of the token supply is controlled by insiders and developer wallets
- There are concerns about insider trading and price manipulation
- This incident adds to a growing list of celebrity meme coins facing similar issues
In the latest chapter of celebrity-backed cryptocurrencies, UFC superstar Khamzat Chimaev’s foray into the world of meme coins has ended in controversy and financial loss for early investors.
The undefeated fighter’s SMASH token, launched on the Solana blockchain, saw its value plummet by over 90% within hours of its debut, amid serious allegations of insider trading and market manipulation.
Chimaev, known for his dominant performances in the octagon and his catchphrase to “smash everyone,” promoted the SMASH token on his Twitter account on Wednesday. “There is one crypto coin about me—they call it SMASH,” Chimaev tweeted. “Let’s ‘smash’ together guys—let’s go.” However, the fighter’s enthusiasm was short-lived, as the token’s value crashed dramatically shortly after.
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
The incident caught the attention of blockchain investigator ZachXBT, who conducted an on-chain analysis of the token’s distribution.
His findings were alarming: up to 78% of the SMASH token supply appeared to be controlled by insiders and developer-related wallets. This concentration of tokens in a small number of wallets raised immediate red flags about potential price manipulation and insider trading.
According to ZachXBT’s analysis, at least 71% of the supply can be directly linked to insider wallets that were funded by the same Ethereum address that funded the SMASH token’s developer address on Solana.
The investigator detailed how 24 addresses were funded with a total of 86.2 SOL (worth approximately $11,500 at the time). These same addresses then purchased 712 million SMASH tokens, representing 71.2% of the entire supply.
The blockchain sleuth explained the process: “Using timing analysis confirms 71% insider and dev team wallets is directly linked as they were funded by same address on Ethereum.”
He further noted that after buying 71% of the supply, these 24 addresses distributed the tokens across smaller addresses, a common tactic used to obscure the concentration of holdings and disguise potential price manipulation.
This revelation led to a swift and severe market reaction. The SMASH token’s value plummeted from its all-time high of 0.01 SOL to just above 0.004 SOL, or approximately $0.53 per token, according to data from Dexscreener. This represents a staggering 91% drop in value over a 24-hour period.
The incident has added fuel to the ongoing debate about celebrity-endorsed cryptocurrencies and their impact on the broader crypto industry.
While some view these projects as a sign of mainstream adoption, others argue that the poor performance and controversial nature of many celebrity tokens are damaging the industry’s reputation.
The SMASH token is not an isolated case. Recent months have seen a spate of celebrity-backed meme coins facing similar issues. Tokens associated with personalities such as Jason Derulo and Andrew Tate have also been hit with controversy and allegations of insider trading or deceptive practices.
For instance, American singer Jason Derulo’s JASON token faced backlash when analytics firm Bubblemaps claimed the singer sold thousands of dollars worth of his token despite claims that he “WILL NEVER SELL.”
Similarly, the Daddy Tate (DADDY) memecoin, launched by controversial former kickboxing champion Andrew Tate, was also accused of insider trading, with claims that insiders bought 30% of the supply at launch before Tate began promoting it on social media.
