DeFi Development Corp. (DFDV), a publicly traded company that manages Solana's finances, has been embroiled in allegations of insider trading while issuing its own meme coin.
According to Solscan blockchain data on the 23rd (local time), DFDV issued the Solana-based meme coin "DisclaimerCoin (DONT)" that morning. This process sparked controversy when evidence emerged that a specific wallet had purchased the token approximately an hour before the official announcement.
The wallet in question, with an address ending in "8FziB," began purchasing approximately 25 minutes after token creation, investing approximately $4,000. An official announcement from DFDV followed. The wallet secured approximately 7% of the total supply, and the value of its holdings significantly increased following the announcement due to a price increase.
During the price fluctuations, this wallet is believed to have sold some of its holdings, generating realized profits worth hundreds of thousands of dollars. Cryptocurrency research firm Kairos Research analyzed the flow of funds associated with this wallet and suggested a possible connection to DFDV. However, this analysis is based on on-chain data, and the identity of the transaction parties has not been officially confirmed.
As the controversy spread, DFDV issued a statement, stating that it determined the address in question was a "sniper" wallet that automatically purchased new tokens. The company explained that it had recovered and burned the sale proceeds and remaining tokens from the wallet in question, but did not provide further details on the specific recovery method or the identity of the transaction entity.
Following the token burn announcement, the price of DONT surged in the short term. Meanwhile, DFDV, a publicly traded company known for its large Solana holdings, saw its stock price decline slightly following the controversy.
