The launch of $ELIZA, a token introduced by Andreessen Horowitz (a16z) partner @shawmakesmagic, has sparked controversy following allegations of insider trading and large-scale token dumps.
The announcement claimed to “free” $eliza by replacing it with $ELIZA, but the transition has left the crypto community reeling.
At 06:01:41 UTC, wallet “FEbv…4ZcW” deployed $ELIZA. In a suspiciously well-timed move, an individual used 10 wallets to purchase 69.05 million $ELIZA—worth $5.2 million today—for just 2.07 $SOL ($503) at the moment of deployment. These tokens were subsequently transferred to new wallets but have yet to be sold.
The wallet “GxkX…W2Yg,” suspected to belong to Logan (@futjr_), is under scrutiny for offloading a significant amount of $eliza before $ELIZA’s launch.
Logan’s wallet then spent 24.2 $SOL ($5,900) to acquire 233.12 million $ELIZA, currently valued at $17.67 million, making it the largest holder of the new token. The wallet is linked to the $ELIZA deployer, raising questions about insider involvement.
$ELIZA Insider Information And Trading
Further complicating the situation, several wallets purchased $ELIZA before its official announcement on Discord, sparking speculation of insider trading. One wallet, “ExYQ…vNw,” spent 7.84 $SOL ($1,900) to buy 89.19 million $ELIZA and sold 53.47 million tokens for 7,865 $SOL ($1.91 million). This resulted in a staggering 2,446x return, earning $4.66 million in mere hours.
What happened to $eliza and $ELIZA?
AI16z partner @shawmakesmagic tweeted that they freed $eliza and deployed a new token called $ELIZA!
Many insiders bought a massive amount of $ELIZA and dumped it!
1/ Let's dive in! pic.twitter.com/wAhbFlUviP
— Lookonchain (@lookonchain) November 19, 2024
Insiders dumping $ELIZA on retail investors have fueled outrage within the community, overshadowing the token’s launch. While $ELIZA’s price surge has generated profits for early buyers, allegations of unethical practices highlight ongoing challenges of transparency and fairness in the crypto space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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