Concerns are swirling around the new SatoshiVM (SAVM) cryptocurrency after a wallet linked to the developer team sold over $3 million worth of tokens amidst the recent price rally.
This, combined with extremely volatile price swings since SAVM’s launch just days ago, has analysts sounding alarm bells about the potential for a “pump and dump” scheme designed to benefit insiders at the expense of everyday investors.
TLDR
A wallet linked to the SatoshiVM team sold over $3 million worth of SAVM tokens amidst the recent price rally, raising concerns about a potential “pump and dump” scheme.
Analysts and experts are warning that SatoshiVM could be a scam or involve a “rug pull,” based on the suspicious transactions from a related wallet.
Over 1.2 million SAVM tokens were transferred to influencer wallets, worth $10.5 million, representing 11.5% of the total supply.
SAVM’s price has been extremely volatile since launch, spiking to $14.10 shortly after release, then crashing to $7.26, and now rallying again over $11. This adds credibility to “pump and dump” concerns.
Investors are cautioned to be vigilant and critical when evaluating projects like SatoshiVM that exhibit red flags around transparency, transactions, price action, etc.
According to on-chain data analytics firm LookOnChain, a wallet affiliated with the individuals behind SatoshiVM first received 420,000 SAVM tokens from the SatoshiVM team, worth approximately $4.7 million. Soon after, transactions show this wallet transferring around $3.36 million worth of SAVM to other wallets and exchanges.
A wallet related to the @SatoshiVM team is selling $SAVM!
Wallet”0xfdac” received 420K $SAVM($4.7M) from the @SatoshiVM team wallet.
Then transferred 189,700 $SAVM($2.12M) to 24 new wallets and has sold 124,739 $SAVM for 504 $ETH($1.24M) currently.https://t.co/byXve425jY pic.twitter.com/UgxgXGXvrl
— Lookonchain (@lookonchain) January 22, 2024
This revelation has added credibility to suspicions that unscrupulous insiders could be artificially inflating (or “pumping up”) SAVM’s fledgling price in order to sell (“dump”) tokens at the short-term peak. The practice constitutes illegal market manipulation.
Adding to skeptic’s concerns, SAVM’s launch has been accompanied by wild price swings. After spiking to $14 shortly after release, the token rapidly crashed to around $7 the very next day before climbing back above $11 – volatility consistent with manipulation.
SAVM has also employed questionable marketing tactics, including transferring 11.5% of the total supply to influencer wallet addresses. While hype and exposure are critical to any new cryptoasset’s success, critics argue SatoshiVM seems overly reliant on social media personalities rather than product strength.
Expert analysts have responded strongly to these red flags, with one prominent voice labeling SAVM an outright “scam” while others warn of striking similarities to illegal “rug pull” schemes where developers promote a token before suddenly disappearing with investors funds.
The SatoshiVM story highlights why caution is warranted when evaluating new crypto projects. Without sufficient history and transparency around developers and business practices, investors risk exposure to schemes designed to exploit innocent people – still all too common in the loosely regulated crypto ecosystem. Although innovation flourishes in this decentralized landscape, so too can fraud without proper vigilance.
The post Caution: Why the SatoshiVM Crypto Rollercoaster Has Analysts Worried appeared first on Blockonomi.
