The person who ignited the scandal was ZachXBT, a well-known blockchain researcher. ZachXBT disclosed that approximately 80% of the supply of SMASH, the memecoin based on the Solana blockchain, was secretly purchased by individuals associated with the SMASH team.

In a July 4 Twitter post, ZachXBT conducted an extensive timing analysis, claiming that 70% of the SMASH development team wallets and insider wallets were linked, funded from the same Ethereum address. This raised the suspicion that these individuals were engaging in market manipulation to artificially raise the token price.

Chimaev had actively promoted the SMASH token in numerous posts on both Twitter and Telegram. However, faced with accusations of depreciation of the token and fraud, he has not yet made any statement.

This silence strengthens allegations that Chimaev is trying to raise the token price by misleading investors. Investors, on the other hand, faced the risk of losing a significant amount of money by investing in SMASH following Chimaev’s promotion.

This is not Chimaev’s first scandal promoting digital assets via social media. In April 2023, he introduced himself as the ambassador of CAIZcoin, defined as a “cryptocurrency in accordance with Islamic rules.” On CAIZcoin’s website, there were reliable names among the companies they would potentially partner with with the project. However, after Chimaev’s statement, Elliptic spokesperson stated that they do not have any partnership or connection with CAIZcoin.

Khamzat Chimaev and the SMASH token scandal once again reveals that the promotions of famous names in the cryptocurrency market should be strictly monitored. There is always a risk that such promotions may mislead investors and open the door to fraud.

Celebrities need to be transparent about the cryptocurrencies they promote and make investors aware of potential risks. Otherwise, the cryptocurrency market may experience a loss of confidence and its healthy development may be interrupted.

This incident also teaches an important lesson that investors should be aware of. Instead of blindly believing the promotions of celebrities, it is necessary to conduct comprehensive research and evaluate the project from all aspects before investing.

While the cryptocurrency market offers high return potential, it is also an area that carries high risk. Therefore, conscious investors should always proceed with caution and make their own decisions.