Popular UFC fighter Khamzat Chimaev’s foray into the cryptocurrency world with his memecoin, Smash (SMASH), has hit a rough patch. The token is facing allegations of insider trading, causing its price to plummet.
On-chain investigator ZachXBT sparked the controversy by analyzing the distribution of SMASH tokens. According to his findings, a significant portion, potentially reaching 78%, was held by wallets linked to insiders and developers. This raised concerns about potential manipulation of the token’s price.
ZachXBT further criticized Chimaev’s team, highlighting a lack of transparency in separating team and insider wallets. This, he argued, damaged the reputation of the project and fueled suspicions of a “pump and dump” scheme.
The allegations coincided with a dramatic drop in the price of SMASH. Within a day, the token’s value crashed by over 91%, falling from its all-time high of 0.01 Solana (SOL) to a mere 0.004 SOL. This steep decline reflects a loss of investor confidence triggered by the insider trading claims.
A major cryptocurrency news outlet attempted to reach Chimaev’s team for comment, but no response has been received yet. The lack of official response further intensifies the negative sentiment surrounding SMASH.
This incident serves as a cautionary tale for investors venturing into the often-unregulated world of memecoins. Careful research and a critical eye towards token distribution are crucial before investing in such projects. The future of SMASH remains uncertain. Recovering from these allegations and regaining investor trust will be a significant challenge for Chimaev and his team.
