The recent launch of Egypt Cat ($SPHYNX) has been marred by accusations of unfair practices.
An insider reportedly manipulated the market by using 10 newly created wallets to purchase 496.2 million $SPHYNX, which accounts for 49.62% of the total supply.
These 10 wallets were set up just one hour before the token’s launch and funded with $SOL withdrawn from Binance. The insider spent 3,890 $SOL (approximately $670,000) to acquire the 496.2 million $SPHYNX within a single second of trading commencing. Subsequently, the insider distributed the $SPHYNX tokens across nearly 300 different wallets.
Egypt Cat( $SPHYNX) seems to be an unfair launch!
An insider used 10 new wallets to buy 496.2M $SPHYNX, 49.62% of the total supply!
These 10 wallets were created 1 hour before the token launch and withdrew $SOL from #Binance to buy $SPHYNX.
The insider spent 3,890 $SOL($670K)… pic.twitter.com/MxN3yfhOPa
— Lookonchain (@lookonchain) June 6, 2024
Another Whale Earned 3,137 SOL In Just An Hour
Further scrutiny from Lookonchain uncovered another instance of rapid profit-making. A trader managed to earn 3,137 $SOL ($540,000) in just one hour. This trader successfully spent 120 $SOL to buy Egypt Cat ($SPHYNX) within one second of trading opening and then sold all of it for 3,257 $SOL, realizing a profit of 3,137 $SOL. This represents an astonishing return on investment (ROI) of 2,614%.
https://x.com/lookonchain/status/1798762748140195898?t=CaB5SWlFKeVImU1Anq3lXA&s=19
These incidents highlight significant concerns regarding the fairness and transparency of the Egypt Cat token launch, raising questions about insider trading and the integrity of the process. The rapid accumulation and distribution of tokens by insiders and the subsequent profiteering call for a closer examination of the practices surrounding this cryptocurrency launch.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.