A new report from Bubblemaps has raised concerns about potential market manipulation in the $BULLISH token, highlighting a concerning concentration of ownership within specific wallets. The analysis reveals that 70% of the tokens are held in newly created wallets funded by Binance. This rapid accumulation and high concentration, according to on-chain data and CEO Nicolas Vaiman’s comments, raises alarm bells for investors.
Bubblemaps argues that this pattern suggests coordinated control, potentially facilitating price manipulation through swift transactions. Their findings echo similar patterns observed with tokens like $DJT and UNI, which saw dramatic declines in value after high concentration ownership in a small group of hands. These past instances serve as cautionary tales about the potential risks associated with such concentrated holdings.
The report’s analysis highlights concerns regarding market stability. Bubblemaps argues that if these large holders decide to sell their tokens en masse, it could trigger liquidity shortages and disrupt prices. This poses a risk for investors who may experience substantial losses due to sudden price fluctuations. To avoid similar scenarios, the company calls for greater transparency in market practices and the utilization of advanced AI tools capable of spotting such manipulation patterns.
Nicolas Vaiman, CEO of Bubblemaps, emphasizes the significance of on-chain data analysis: “On-chain data deserves more attention. It is the lifeblood of the system. However, it is widely overlooked by the majority of crypto users because traditional tools are complex and overwhelming.”