Blockchain analysis links insider wallet cluster to 40% of AVA tokens as price collapses
The Solana-based AI token Ava (AVA) has come under renewed scrutiny after onchain analysis revealed that a significant portion of its initial supply was accumulated by wallets allegedly linked to the token’s deployer. The findings raise concerns over insider coordination and token distribution transparency, particularly as the token has suffered a sharp decline from its peak valuation.
Wallet Clusters and Launch Sniping Activity
According to blockchain analytics data, a cluster of 23 interconnected wallets accumulated approximately 40% of AVA’s total supply at launch. These wallets exhibited striking similarities, including being funded within a narrow time window, receiving comparable amounts of Solana, and showing no prior onchain activity before purchasing AVA tokens immediately upon launch.
Such behavior is commonly associated with token launch sniping, where automated trading tools acquire newly issued tokens the moment liquidity becomes available. Although Ava launched via a platform marketed as enabling fair and decentralized distribution, the concentration of tokens suggests otherwise.
Implications of Token Concentration
A highly concentrated token supply increases the risk of market manipulation and sudden sell-offs. In extreme cases, insiders may drain liquidity, triggering a rapid price collapse that leaves retail holders exposed. These patterns are often flagged as early warning signs in post-launch forensic analysis.
The activity was identified using advanced historical tracking tools capable of reconstructing early token distribution and identifying coordinated wallet behavior.
AVA Price Performance After Launch
AVA launched in November 2024 and reached a fully diluted valuation of roughly $300 million by early 2025. However, the token has since declined more than 96% from its all-time high, reflecting waning investor confidence amid transparency concerns.
The Ava case highlights ongoing challenges around fair launches, insider access, and investor protection in the AI token sector. As scrutiny around onchain behavior grows, transparent distribution and accountability are becoming critical factors in sustaining long-term market trust.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.