It is a good advice to stay vigilant when considering investments in cryptocurrency, particularly if they are linked to a public figure such as UFC star Khamzat Chimaev. Chimaev recently endorsed a meme token called Smash, based on the Solana blockchain, which saw its value escalate to $1.35 before crashing by more than 91% within a day. Allegations have surfaced suggesting that Chimaev may have been part of a scheme to artificially inflate the coin’s value and then sell off his holdings.
An individual named ZachXBT, specializing in cryptocurrency investigations, stated that Chimaev urged his followers to invest in Smash and subsequently withdrew his support, purportedly making off with up to $1 million from unsuspecting investors. These actions raised suspicions of potential market manipulation. Despite lacking formal expertise in forensic cryptocurrency analysis, ZachXBT published specific details of blockchain transactions that he asserts reveal the fraudulent nature of the operation.
According to reports from CoinTelegraph, approximately 71% of the total supply of Smash tokens can be traced back to insider wallets associated with the same Ethereum address that initially funded the project’s development. This implies that the creator of Smash also acquired the majority of the tokens, estimated at 712 million. The surge in Smash’s value following Chimaev’s endorsement was short-lived, followed by a rapid decline, allegedly enabling the scheme’s mastermind to pocket roughly $1 million in profits.
Although this amount may appear relatively small in the realm of cryptocurrencies, this incident has tarnished Chimaev’s reputation. It underscores the potential hazards associated with investing in cryptocurrencies that are backed by well-known figures.
