SatoshiVM Team Wallet Activity and 25% Price Decline Cause Rug Pull Fears
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The recently launched cryptocurrency SatoshiVM (SAVM) is being accused of being a scam, with a price decline and suspicions of an exit scam known as a “rug pull” in the crypto community.
SAVM initially saw a quick 20% price increase after its January 19 launch, peaking interest among crypto traders after many social media influencers promoted it. After reports surfaced of concerning activity in a wallet linked to SatoshiVM’s founding team, however, the price dropped by 25% in a matter of hours.
Concerning Activity in SatoshiVM Team Wallet
Blockchain analytics firm LookOnChain revealed
that the suspicious wallet, labeled “0xfdac”, had received 420,000 SAVM tokens worth $4.7 million from SatoshiVM’s team wallet. The wallet then transferred 189,700 SAVM tokens worth $2.12 million to two dozen newly created wallets. Over 124,000 of those tokens were promptly sold for 504 ETH, equating to $1.24 million.
A wallet related to the @SatoshiVM team is selling $SAVM!
Wallet"0xfdac" received 420K $SAVM($4.7M) from the @SatoshiVM team wallet.
Then transferred 189,700 $SAVM($2.12M) to 24 new wallets and has sold 124,739 $SAVM for 504 $ETH($1.24M) currently.https://t.co/byXve425jY pic.twitter.com/UgxgXGXvrl
— Lookonchain (@lookonchain) January 22, 2024
Additional transfers of large SAVM sums were also spotted flowing into new wallets before being converted into Ethereum. The pattern of funding and immediate selling suggests coordinated activity by a single entity.
Despite a recent $1.25 million investment in SAVM by an anonymous whale, fears are mounting that SatoshiVM could be orchestrating a rug pull scam. This is when developers artificially boost a cryptocurrency’s price before cashing out their share, leaving investors holding much less valuable coins.
SatoshiVM Token Transfers Raise Rug Pull Fears
SatoshiVM raised further doubts by moving their liquidity pool into a multisignature wallet, a type of wallet often associated with scams. The project’s team remains silent regarding the suspicious wallet activity and token transfers.
The distribution of SAVM tokens is also concerning some analysts. Over $10 million worth of tokens were allocated to influencers and promoters during the cryptocurrency’s first days. This comprised 11.5% of the total supply, given in exchange for social media hype.
SatoshiVM transferred 1,217,818 $SAVM($10.5M, 11.5% of the total supply) to 248 influencer addresses including @ThorHartvigsen.
Currently, these 248 addresses still hold 483,493 $SAVM($4.16M), and 734,325 $SAVM($6.32M) was transferred or sold.https://t.co/U3uphiQjcJ pic.twitter.com/QViWKCjhwb
— Lookonchain (@lookonchain) January 20, 2024
While SatoshiVM’s price initially spiked after influencer promotions, it has since taken a major turn for the worse.
With little transparency from SatoshiVM on the wallet red flags, there is growing uncertainty over the new cryptocurrency. Some investors are cautiously optimistic about SAVM’s prospects, but its rocky start and suspicious activity have seeded doubts that it may turn out to be an elaborately orchestrated rug pull scam.
