According to blockchain tracking firm Lookonchain, concerning activity suggests premeditated price manipulation benefited certain entities around yesterday’s newly launched Ferret Token project.
Per the analysis, a single wallet identified as a probable project insider deployed a series of five wallets to acquire 80 million FERRET tokens within the opening second of liquidity availability. Deploying just 0.34 ETH valued at $878 at the time, the owner then rapidly sold 11.8 million FERRET an hour later to realize a nearly 20 ETH profit exceeding $50,000, implying a >5000% ROI in under 60 minutes.
Flagged wallets currently retain 68 million FERRET now worth approximately $497,000 as of this writing. The rapid succession of perfectly timed transactions reeks of early asymmetric information advantages.
Links to Core Team Suspected
While impossible to prove intent, Lookonchain discovered both the deployment wallet and receiving address of the subsequent FERRET transfers relate to a central team member address. This linkage suggests an orchestrated scheme for project participants to extract unusually large profits from front-running regular investors at launch.
Unfortunately, such scenarios commonly transpire across lightly regulated areas like cryptocurrency, where some developers exploit capabilities to enrich themselves rather than designing fair, equitable systems for community participants.
The episode highlights the need for enhanced transparency measures around token distributions and founder allocations before teams earn the benefit of doubt from trusting contributors and partners. Without checks against greed, speculation of deceit often swirls, as appears in the case currently facing Ferret Token after its questionable inception.
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