Khamzat Chimaev’s Smash Token Faces Insider Trading Allegations

Insiders and developer accounts hold most of Khamzat Chimaev's Smash (SMASH) crypto token, which raises concerns about insider trading for the celebrity memecoin.

Chimaev, a prominent mixed martial artist and UFC contender, has initiated Smash, a memecoin. It is headquartered in Solana.

According to an analysis conducted by the well-known onchain investigator, the purchase of up to 78% of the Smash token supply by insider and developer-related wallets raised concerns regarding price manipulation. ZachXBT stated in a July 4 X post:

“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?”

Dexscreener data indicates that the Smash token experienced a 91% decline in value over the past day, trading at just over 0.004 Solana, or $0.53 per token, a significant decrease from its all-time high of 0.01 SOL.

By market selling a significant portion of their token holdings, insiders with substantial token holdings can single-handedly devalue a cryptocurrency.

Khamzat’s team holds about 78% of the total supply

ZachXBT's analysis indicates that at least 71% of the supply can be explicitly traced back to insider wallets funded by the same Ethereum address that funded the Smash token's developer address on Solana.

The on-chain investigator composed the following:

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

We financed the 24 addresses with a total of 86.2 SOL tokens, which is equivalent to $11,500. According to ZachXBT, these same addresses have acquired 712 million Smash tokens, which accounts for 71.2% of the total supply.

The analyst's chart below illustrates that the 24 addresses have distributed 71% of the supply among lesser addresses after purchasing it.