Khamzat Chimaev's Solana-based Smash token has plummeted 94% following allegations of insider trading and mishandling by his team.
Chimaev Introduces “Smash” Crypto
Khamzat Chimaev, a Russian professional mixed martial artist (MMA) and freestyle wrestler, recently faced harsh scrutiny from both the UFC and crypto communities after launching his own cryptocurrency, 'Smash.' Allegations of insider trading have further tarnished the token's reputation, leading to a significant price drop.
Launch and Immediate Controversy
Chimaev launched the Smash token following a social media inquiry about his followers' preferred cryptocurrencies for investment. However, the launch quickly drew criticism, with pseudonymous crypto investigator ZachXBT accusing Chimaev and his team of insider trading. In a direct comment to Chimaev's post on the social media platform X, ZachXBT alleged,
"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?”
Evidence of Insider Trading
ZachXBT provided evidence suggesting that 24 addresses, funded with a total of 86.2 SOL (approximately $11,500), purchased 712 million Smash tokens, constituting 71.2% of the total supply. These tokens were then distributed across smaller addresses. A screenshot posted by ZachXBT displayed a dramatic decline in the SMASH/SOL price, showing an 18.81% drop within an hour, from nearly 0.02 SOL to 0.0003513 SOL.
Price Decline
The Smash token's value has plummeted over 91% in a single day, falling from its peak of 0.01 SOL to just above 0.004 SOL, or approximately $0.53 per token. Currently, the token trades at 0.00048 SOL, a stark contrast to its initial valuation.
Broader Implications in the Crypto Sphere
Scams and fraudulent activities are not uncommon in the cryptocurrency space, and even celebrities are not immune, whether they participate knowingly or unknowingly. High-profile individuals, including Chimaev, have been implicated in dubious crypto ventures. For instance, the now-collapsed crypto exchange FTX had several celebrity endorsements. Similarly, wrestler Logan Paul was involved in a crypto project, Cryptozoo, that scammed investors.
Celebrity-Backed Cryptocurrencies: A Troubled History
Celebrity-backed cryptocurrencies have a notorious track record. Many of these ventures fail to deliver any substantial value. While some view the launch of celebrity memecoins as a step towards mainstream adoption, their poor price performance often damages the industry's reputation. Within the first week of launch, most celebrity-backed memecoins, including JENNER, DAVIDO, and RICH tokens, fell by at least 66%.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
