May 25, 2024
SatoshiVM's SAVM Token Sales Spark Concerns of a Potential 'Rug Pull' Scam
Altcoins News

SatoshiVM’s SAVM Token Sales Spark Concerns of a Potential ‘Rug Pull’ Scam

A recent report from LookOnChain, a platform specializing in on-chain data tracking, has brought to light concerning activities related to the SatoshiVM team’s involvement with SAVM tokens. The report reveals that a wallet associated with SatoshiVM sold a substantial amount of SAVM tokens, totaling over $3 million, prompting fears of a possible “Rug Pull.”

The specific wallet address in question, 0xfdac, received a significant 420,000 SAVM tokens, valued at an alarming $4.7 million, from the SatoshiVM team. Subsequently, the wallet executed noteworthy transactions, including sending 189,700 SAVM tokens (equivalent to $2.12 million) to 24 new wallets. Additionally, the wallet owner sold 124,739 SAVM tokens for 504 Ethereum tokens (ETH), amounting to $1.24 million, as per Etherscan data. The cumulative impact of these transactions amounted to $3.36 million.

Concerns have arisen within the crypto community, with suspicions of a potential “pump-and-dump” scenario akin to a “rug pull scam,” where developers generate excitement about a new cryptocurrency (such as SAVM) and then disappear with the funds.

While concrete evidence is lacking, experts are expressing doubts about the legitimacy of SatoshiVM. WEB3 Market Insight labeled it a “SAVM Pump and Dump,” and BareNakedCrypto categorized it as a “scam.” Questions are also being raised about the involvement of influencers associated with SAVM and whether they were aware of the situation.

Analysts like Daniel assert that genuinely sound projects do not rely on influencers for support, as they can secure funding from reputable sources without resorting to social media hype. Notably, a substantial portion of SAVM tokens, valued at $10.5 million, was distributed to influencers on January 20, constituting 11.5% of all SAVM tokens. This distribution coincided with a 17% increase in SAVM’s price to over $11, which later stabilized at $10.96.

The overall market value of SAVM is currently $76.96 billion, and its trading volume in the last 24 hours has risen by 3.48% to $37.45 million. Despite an initial surge to $14.10 on launch day, SAVM’s price subsequently dropped to a low of $7.26, raising concerns about potential pump-and-dump tactics.

As the crypto community closely monitors these developments, apprehensions about SatoshiVM’s credibility and the associated risks for SAVM investors continue to grow.

Image by SatoshiVM

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