As a seasoned crypto investor with several years of experience under my belt, I’ve learned to be wary of projects that exhibit red flags when it comes to token distribution and market manipulation. The recent development surrounding Solly meme coin is particularly concerning, given the report by LookOnChain revealing that one developer has purchased an astounding 95% of the total supply.
The Solly meme coin, recently introduced to the meme coin scene on the Solana blockchain, has raised some concerns. According to data from LookOnChain, its developer holds an alarming amount of the token’s supply – a staggering 95%. This massive accumulation leaves room for potential manipulation of the market.
According to recent information, the Solly development team has acquired approximately 950 million SOLLY tokens using four separate wallets, spending around $24,000 in total, which equates to about 152 SOL. This purchase represents a staggering 95% of the entire SOLLY token supply. As a result, the developer holds significant power over the token’s market dynamics, potentially posing a risk for users as a large portion of the tokens are controlled by a single entity.
Having extensive control, a developer can manipulate the market by implementing pump-and-dump schemes, artificially increasing prices, or disproportionately influencing the circulation and liquidity of tokens. The 950 million SOLLY tokens obtained were subsequently distributed among various wallets.
As a crypto investor, I’ve come to realize that having my tokens spread across multiple wallets may seem like a good idea for enhancing privacy and security. However, this approach can also add complexity and potential risks. It becomes challenging to trace the exact transactions and discern the motives behind them, thus increasing the level of uncertainty. Although it might give an impression of decentralization, the actual control remains centralized, with the Solidity developers holding significant power due to their anonymity. They can take any action without accountability, making it crucial for us investors to exercise caution and stay vigilant when dealing with any tokens associated with them.
Investors should be cautious about projects in which a single company owns an outsized share of the supply. Such situations often conceal risks of unethical business conduct and potential market manipulation. Top-tier projects may indeed have a significant supplier, but none will have a supplier holding more than 95% of the shares.
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2024-06-11 13:34