According to U.Today, the developer of the Solana meme coin, Solly, has reportedly acquired 95% of the token's supply. This significant purchase has raised concerns about potential market manipulation. The developer purchased 950 million SOLLY tokens for 152 SOL, equivalent to approximately $24,000. This acquisition gives the developer almost complete control over the token's market dynamics, posing a risk to users due to the control a single entity now has over a large portion of the token supply.
The developer's high degree of control could potentially lead to pump and dump schemes, artificial inflation of prices, or undue influence over the distribution and liquidity of tokens. The purchased SOLLY tokens were subsequently divided among several wallets, a move that could increase opacity and potential risks for investors. This division makes it difficult to track the precise movements and intentions behind these transfers, creating an illusion of decentralization while maintaining centralized control.
The developers of Solly remain anonymous, which means they can take any action without facing consequences. This situation should serve as a warning to investors, as projects where one entity controls a disproportionate amount of the supply often involve increased risks of unfair business practices and market manipulation. While it's not uncommon for top-tier projects to have a distribution where one entity holds a significant amount of the supply, none have reached the extreme of 95% as seen in this case.