Solly meme coin is one of the latest additions to the Solana meme coin landscape. However, a look into the project’s on-chain activity reveals a worrying fact. Its developer has made an enormous purchase, capturing 95% of the meme’s supply in his own hands, as reported by LookOnChain, which opens up numerous ways to manipulate the market.
Based on recent data, four wallets connected to the Solly development team purchased 950 million SOLLY tokens for 152 SOL, or about $24,000. With this acquisition, which accounts for 95% of SOLLY’s total supply, the developer gains almost total control over the token’s market dynamics. For users it is risky that a single entity controls such a large portion of the token supply.
We noticed that 4 wallets associated with the dev wallet spent 152 $SOL($24K) to buy 950M $SOLLY(95% of the total supply).
The 950M $SOLLY was transferred to multiple wallets.https://t.co/pcnKitbQfu pic.twitter.com/oWFFexrjPG
— Lookonchain (@lookonchain) June 11, 2024
With such a high degree of control, the developer can create pump and dump schemes, artificially inflate prices or have undue influence over the distribution and liquidity of tokens. The 950 million SOLLY tokens that were purchased were then divided among several wallets.
This division into several wallets can increase the opacity and possible risks for investors by making it difficult to follow the precise movements and intentions behind these transfers. It keeps the actual control centralized while generating the appearance of decentralization. The Solly developers are anonymous and can take any kind of action without facing any consequences, so it is important to stay cautious if you hold any tokens.
Projects where one company controls a disproportionate amount of the supply should raise red flags for investors because these situations frequently involve increased risks of unfair business practices and market manipulation. Despite the fact that even top-tier projects can have a distribution where one entity holds a respectable amount of the supply, none of their shares reach the extreme of 95%.
