$3Mln SAVM Token Sales: SatoshiVM Accused of Engaging in a Rug Pull Scheme
LookOnChain, a platform that monitors cryptocurrency data, has discovered that a wallet associated with SatoshiVM has sold a significant amount of SAVM tokens worth over $3 million. This has raised concerns that the project might be involved in a deceptive practice known as a Rug Pull.
A recent post on X by LookOnChain, a platform specializing in tracking on-chain data, has drawn attention to a wallet linked to the SatoshiVM team actively selling SAVM tokens.
The wallet address 0xfdac received a substantial 420,000 SAVM tokens, equivalent to an astonishing $4.7 million, from the SatoshiVM team. After receiving these tokens, the wallet conducted some interesting transactions. It sent 189,700 SAVM tokens, worth $2.12 million, to 24 new wallets. Additionally, the owner of the wallet sold 124,739 SAVM tokens for 504 Ethereum tokens (ETH), totaling $1.24 million, according to information from Etherscan. Therefore, the total value of these transactions amounts to $3.36 million.
There are concerns that this may be a “pump-and-dump” situation, which is detrimental. It is similar to a “rug pull scam,” where developers generate a lot of excitement about a new cryptocurrency, such as SAVM, and then suddenly disappear with the funds.
Although there is not yet concrete evidence, experts have expressed doubts about SatoshiVM. WEB3 Market Insight referred to it as a “SAVM Pump and Dump,” and BareNakedCrypto labeled it a “scam.” People are also questioning the role of influencers associated with SAVM, wondering if they were aware of the situation.
One analyst, Daniel, stated that if a project is genuinely good, it does not require influencers for support. Legitimate projects can secure funding from reliable sources without relying on social media hype.
A significant number of SAVM tokens, worth approximately $10.5 million, were given to influencers on January 20. This accounted for 11.5% of all SAVM tokens. Around the same time, the price of SAVM increased by 17%, reaching over $11. However, it later settled at $10.96, still higher than before.
The volatility of SAVM’s price raises concerns. Its overall market value is $76.96 billion, and the volume of SAVM tokens traded in the last 24 hours increased by 3.48%, totaling $37.45 million. Initially, SAVM’s price rose to $14.10 on its launch day but then dropped to a low of $7.26, leading to worries about a potential pump-and-dump strategy.
As the crypto community closely monitors these developments, questions about the reliability of SatoshiVM and the risks of investing in SAVM are causing concerns.