Don’t forget to exercise caution when investing in cryptocoin, even if it is endorsed by your beloved UFC fighter.
Khamzat Chimaev is currently facing allegations of involvement in a ‘crypto rug pull’ following his endorsement of a new Solana-based memecoin called Smash. Referred to as “Borz,” Chimaev extensively promoted Smash on various social media platforms, resulting in the token’s price surging to 0.01 SOL (equivalent to $1.35 in outdated US currency).
What happened next will shock you.
Less than a day after Chimaev’s strong promotion, SMASH experienced a significant decrease in value, plummeting by more than 91% to 0.004 SOL ($0.53) per token. While memecoins often exhibit high volatility, individuals examining the coin’s blockchain are now accusing Khamzat of orchestrating a pump and dump scheme.
this honestly might be one of the biggest fall offs in the history of the UFC pic.twitter.com/X6rTsdMySc
— OOC MMA (@oocmma) July 5, 2024
Noted crypto investigator ZachXBT explained.
“He said that Khamzat Chimaev and his team introduced a cryptocoin called Smash yesterday and created several videos to promote it among his followers. Shockingly, within a mere day, he deceitfully abandoned the coin and dishonestly swindled up to $1,000,000 from his trusting fans who had invested in his coin.”
Naturally, the genius and his trustworthy team were promptly exposed for their actions, and people quickly traced the scam back to him using the precise wallet addresses he had employed. Immediately after pulling off the deception, Khamzat swiftly removed all the videos he had created to promote the scam.
ZachXBT concluded with sadness, expressing his disappointment in witnessing someone’s journey from the brink of achieving great fame to resorting to scamming their own fans for meager profits. He speculated that the individual likely only received a minuscule portion of the stolen funds.
It should be mentioned that we do not possess expertise in forensic crypto analysis, therefore we cannot conclusively affirm or refute ZachXBT’s assertions. Nevertheless, ZachXBT does provide a Twitter post wherein he enumerates the exact blockchain transactions that indicate an insider scam took place.
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
According to CoinTelegraph, “at least 71% of [Smash] 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.”
To put it differently, the entity responsible for establishing Smash also acquired the majority of Smash tokens, approximately 712 million in total. Khamzat subsequently promoted the coin, resulting in an increase in its value. However, a sudden sell-off occurred, estimated by ZachXBT to have allowed the culprits behind this scheme to make a profit of approximately one million dollars.
Although it may not be a significant amount in the crypto world, earning it within 24 hours is quite impressive. However, the price paid for this achievement is Khamzat Chimaev’s reputation.
