The price of SatoshiVM (SAVM) has soared more than 100-fold since the recent token launch, generating significant profits for early investors.
SAVM has been described as “BTC’s first EVM-compatible protocol with real traction.” This is a Bitcoin Layer 2 solution that leverages zero-knowledge (ZK) rollups to address the inherent limitation of blockchain networks, which are the lack of basic smart contract functionality.
SAVM Token Launch Highlights
The SAVM token launch began on January 18th and concluded on January 19th. According to Bounce Brand, 23,487 individuals participated in the launch, with randomly selected winners being SAVM and ILO winners claiming ETH rewards.
After launch, the value of the altcoin soared, reaching nearly $15. This was driven by the support of various cryptocurrency influencers who promoted the project within the community.
However, prominent on-chain researcher ZachXBT advised caution, warning the community about potential token allocations to these influencers.
“When influencers with large followings start launching projects at the same time, there is a high probability that they will have quotas and dump cheap tokens.” ZachXBT warned.
Afterwards, blockchain investigator LookOnChain Confirmed Warning from ZachXBT. He revealed that the SAVM team allocated 1.2 million tokens worth $10.5 million (11.5% of the total supply) to 248 influencer addresses. These addresses sold or transferred more than 50% of their holdings, leaving 483,493 SAVM (equivalent to $4.16 million).
This selling activity has particularly impacted the price of SAVM, sending it back to around $9.39.
Traders Seize Opportunity
Meanwhile, two talented traders took advantage of the early stages of the project and made a profit of nearly $8 million. These traders reportedly utilized the Banana Gun bot, a sniping trading bot designed to quickly purchase newly released tokens.
According to Look on chain, the first trader paid a bribe of 141.66 ETH (about $347,350) to secure the first purchase of SAVM at launch. As a result, the trader invested 277.66 ETH (equivalent to $681,000) to acquire 2.61 million SAVM.
Read more: 11 Best Altcoin Wallets to Consider in January 2024
After the purchase, the trader sold approximately 2.16 million SAVMs for $4.38 million, and held approximately 450,000 SAVMs worth $3.07 million across four different wallets. This trader’s total profit amounts to approximately $6.77 million, reflecting a significant return on his initial investment of $681,000.
Similarly, a second trader paid a bribe of 121.07 ETH, equivalent to approximately $296,863, to secure a second purchase of SAVM tokens. The trader invested 211.07 ETH, worth $521,000 including fees, to earn 456,983 SAVM. He later sold 444,483 SAVM (worth $1.49 million) for 602 ETH, but kept SAVM worth about $125,000.
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