UFC fighter Khamzat Chimaev is facing backlash for promoting the SMASH meme coin, which has seen a drastic decline in value. The SMASH Coin’s market value dropped by over 95% shortly after Chimaev’s endorsements, leading to allegations of market manipulation and insider trading.
All About Khamzat Chimaev
- Chimaev actively promoted SMASH Coin on social media and videos, encouraging his followers to invest.
- Majdi Shammas, expressed frustration, stating that Chimaev’s endorsements were made without thoroughly investigating the coin’s legitimacy.
Allegations of Market Manipulation
- Blockchain investigator ZachXBT has suggested that Chimaev and his team may have been involved in a pump-and-dump scheme with SMASH Coin.
- According to ZachXBT, the creators of SMASH Coin allegedly acquired a substantial portion of tokens to artificially inflate prices, benefiting from the subsequent hype.
Aftermath and Fallout
- In response to the controversy, Chimaev quickly removed all mentions of SMASH Coin from his social media profiles.
- Investors who bought into SMASH Coin during the peak now face significant financial losses, raising concerns about celebrity endorsements in the crypto market.
Conclusion
The SMASH Coin controversy shows that the crypto world can be very risky when not handled with care, especially when promoted by celebrities like Khamzat Chimaev leading to disappointment and trustlessness. Hence, one needs to be very careful and transparent while operating in the crypto niche.
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