Unveiling the Memecoin Manipulation: The Twisted Trail of WaifuAI (WFAI)
WaifuAI (WFAI) which is a new memecoin that features AI-generated anime characters entered the market with an unbalanced initial distribution that raised eyebrows . Crypto Twitter user Chris (@ChrisONCT) began an investigation into the project which later caught the attention of WuBlockchain which revealed a complex market manipulation scheme involving Venture Capital (VC) company DWF Labs .
Masking Manipulation Through Initial Distribution
The investigation found that the initial allocation of 95% of WFAI tokens into liquidity pools was used to disguise the manipulation . Evidence suggests that the entity behind the memecoin managed to buy back 86% of the supply at a significantly low price which raised suspicion about their involvement .
Following the Trail: An Intricate Web of Transactions
A series of suspicious transactions came to light which involve the receipt of Ethereum from Huobi and Binance accounts and the subsequent purchase of trillions of WaifuAI tokens . The purchased tokens were then distributed among newly created addresses many of which belonged to DWF Labs . The investigation revealed that this was only the beginning of the story .
Uncovering the Iceberg: Deeper Layers of Manipulation
After the initial investigation further memecoin purchases were made in larger amounts, spreading the results across numerous sub-accounts . These subsequent transactions aimed to complicate the trail but investigators were able to identify and track 15 purchase operations totaling 672 .79 trillion WFAI tokens . DWF Labs managed to reclaim a significant portion of the supply that was meant for retail investors which raised questions about their intentions .
DWF Labs: A Controversial Venture Capital Company
DWF Labs emerged with substantial investments in various cryptocurrency projects including the fraudulent CriptoGPT project . The company’s reputation was further harmed when a CoinDesk article about them was criticized as a “puff piece” which led to skepticism about their operations in the cryptocurrency market .
The complex web of transactions and the involvement of DWF Labs raise concerns about market integrity and the need for cautious scrutiny . The incident serves as a reminder to investors to stay careful and conduct thorough research before engaging with new projects .