Suspicious transaction when KOLs 'shill' memecoin

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The crypto market is one of the most vulnerable to KOLs. Along with the rise of memecoin, KOLs contribute significantly to the FOMO of the community. Some on-chain data shows a lot of suspicious information.

Let's analyze transactions related to Elon Musk and LADYS token; Ben. ETH & BitCrypto with BEN token to understand the double-edged sword from the influence of KOLs.

Elon Musk with the token LADYS

Elon Musk and coin/token price blows

The crypto market is news sensitive, the market size is relatively small compared to other financial markets. Therefore, with just a small impact from big KOLs like liking, following, or tweeting about a project, that project's coin/token can skyrocket in a short time.

The American billionaire has repeatedly mentioned coins in his half-joking tweets.

Elon Musk once "shilled" the popular Bored Ape Yatch Club project when he changed the avatar with the NFT image of this collection, and at the same time made the community pay attention to the Ape token (ApeCoin), pushing the token price up with just one photo. .

elon musk changed avatar bored apes.
Elon Musk changed Bored Apes avatar.

Dogecoin is also a project often mentioned by Elon Musk. Recently, Elon Musk also played big when he changed the Twitter logo to a memecoin logo with the image of a Doge dog, instantly increasing this token by 30% overnight. At this point, the community has observed that Doge whale wallets take advantage of the opportunity to release tokens.

XEM more: Elon Musk blew the price of Dogecoin up sharply overnight, whale wallets quietly "discharged"

It can be seen that this billionaire has a special interest in memes and memecoins. After many mentions of Doge, most recently Elon Musk made the community stir when he mentioned Milady Meme - the image of LADYS memecoin. At this point, the community has more and more evidence that Elon Musk's tweets facilitate insider trades.

Big profitable trades with LADYS

LADYS is a new memecoin that has only been deployed since May 7, 2023, appearing after the memecoin trend emerged, it seems that LADYS will be overshadowed by countless other memecoins. However, there are still many wallets that buy LADYS in an unbelievably random way.

Appeared on May 7, at that time no one cared about LADYS, on May 10 suddenly nearly 6000 wallets were created (10 times the number of the previous days) to accumulate LADYS tokens. And just a day later, Elon Musk posted a tweet related to this memecoin. This is the first notable point and also the sign that it can be used with other tokens.

ladys
LADYS cumulative wallets spiked before Elon Musk tweeted. Source: Dune

Out of 6000 wallets created one day in advance, many have recorded huge profits ( ATH ROI can reach ~150x). A few wallets with notable activity:

Whale 0x3c7 has bought into LADYS since May 9 with a capital of only about 13k USD, recording a profit of ~100x after only a few days. Previously this wallet held almost no tokens, and did not record any activity for a period of time. Currently, the wallet does not have profit taking activities with LADYS.

ladys 100x whale
100x profit in a few days of 0x3c7 wallet. Source: Arkham

DWF Labs is one of the few funds with LADYS related transactions. This wallet bought about 24.6k USD worth of LADYS on May 9, currently the token holding DWF Labs is worth 1.76 million USD, achieving ~70x profit for transactions related to LADYS. Currently, the wallet is still holding a large amount of LADYS.

dwf labs ladys
Trade highly profitable DWF Labs with LADYS tokens. Source: Nansen

Wallet 0x326 is one of the early transaction wallets with LADYS. Thanks to the early purchase of this memecoin, this wallet has reached 150x profit, recording a profit of 1.46 million USD with only LADYS. This wallet recently took profit on half of the tokens deposited on Gate, about half of which is used to provide Liquidity on Uniswap V2 and V3.

ladys 150x whale
150x profit with LADYS of early buy wallet. Source: Arkham

Most notably, the lookonchain account found the 0xc48 wallet created only 1 hour before Elon Musk tweeted, and used 25 ETH to buy LADYS while there were no transactions before. At the time of ATH, this wallet has a profit of about 1.29 million USD, after being discovered by the community, currently the wallet has not sold tokens. Is this wallet directly related to Elon Musk?

We found a mysterious address.

- Created 1 hour before #Elon_Musk tweeted about #Milady .

- Withdrew 25 $ ETH ($45,362) from #Binance and bought 8T$LADYS at $0.000000005652.

- No other transactions.

is it a coincidence?👀 pic.twitter.com/3IQLZefo7q

— Lookonchain (@lookonchain) May 10, 2023

Ben. ETH and BitBoy Crypto with tokens BEN

Elon Musk is not the only KOL involved in memecoins, influential KOLs can take advantage of the large community and recent strong growth of memecoins to make a profit for themselves. Most recently, there has been a controversial scandal event of 2 KOLs with the same name Ben.

Ben. ETH is a NFT collector active mainly on Twitter, this KOL decided to create 420.69T personally branded memecoin BEN. Ben. ETH conducted a pre-sale and a day after the public sale, the BEN token quickly reached a market capitalization of 1 million USD.

GET YOUR HOT FRESH $BEN HERE. WE LIVE. I REPEAT $BEN IS LIVE. ALREADY 1 MIL MCAP. https://t.co/1PW3Nz0hxL

— ben. ETH (@eth_ben)May 5, 2023

At this time, not many people knew about the BEN token, until BitBoy Crypto (real name Ben Armstrong) - a sizable KOL in the market with more than 1 million followers tweeted his interest in the memecoin. same name as BitBoy.

You've been waiting on the official $BEN announcement and here it is.

I have officially joined the $BEN coin team.

Myself, @eth_ben , and a soon to be announced third member will make up “The 3 Wise Ben” team that will direct the project.

1/3

— Ben Armstrong (@Bitboy_Crypto) May 9, 2023

After these 2 KOLs joined the same team, BEN immediately grew strongly from a market capitalization of 10 million USD to the highest level of 84 million USD. After this bout of growth, Ben. ETH sold all BEN to BitBoy Crypto, earning a rumored profit of around $6 million.

ben increased the price
BEN increases in price when KOL BitBoy Crypto participates in operating. Source: Dexscreener

A double-edged sword from the influence of KOL

Earning several million dollars in just one week, but Ben. ETH did not stop, this KOL took advantage of the newly built reputation and continued to create a new memecoin, PSYOP, just 1 day after announcing the sale of BEN to BitBoy.

ben eth presale
Ben. ETH calls for a new memecoin presale. Source: Ben. ETH

Ben. ETH invites community members to purchase the PSYOP token presale by sending ETH to a wallet with the ENS domain name "ben. ETH". This KOL took advantage of the community's FOMO into the growth of the previous memecoin, calling for the sale of PSYOP without giving any information about the selling price, time of sale, how to sell, even the token contract has not yet been released. deployed.

Even so, there are still hundreds of people who trust to deposit ETH into the ben wallet. ETH , now this wallet has received 3803 ETH worth nearly 7 million USD. Up to now, there is still no official contract of PSYOP, many people in the community are at risk of being scammed to lose their ETH.

ben eth . wallet
Wallet ben. ETH received 7 million USD worth of ETH. Source: Etherscan

Instead of releasing a new contract token or posting an explanation, Ben. ETH still only regularly tweets about the memecoin, mentioning the name of this new memecoin. Many members of the community have begun to worry, even outraged by this KOL's ability to rug-pull 7 million USD at any time and an account to warn of Ben's risk of facing the law. ETH.

5/16 Update: @eth_ben is not in jail yet.

Check back daily for updates$PSYOP $BEN

— Ben. ETH Jail Tracker (@Eth_Ben_Jail) May 16, 2023

To avoid being negatively affected by the influence of KOLs, users can also use the Dashboard Influencer Doxxer tool on Dune Analytics to find wallet addresses that hold certain tokens mentioned by KOLs. The more tokens with high holding capacity, the higher the rate of finding that KOL wallet.

kol search dashboard

Dashboard finds out the KOL wallet address on Dune.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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