- The Black Bull (ANSEM) token spiked by 464,507% from $0.0000356 to $0.1654 in just a few weeks.
- Crypto investigators raised several red flags around the memecoin’s activities shortly before its massive rally.
The Black Bull (ANSEM) token appears as a major success on the charts. The Solana (SOL)-based memecoin went from around $0.0000356 a couple of weeks ago to an all-time high of $0.1654 on Tuesday. The figures represent an astonishing climb of around 464,507% across the timeframe.
To date, the token remains within the $0.14 range. Despite its seemingly colossal performance, analysts are raising red flags over the activities leading to its surge.
Red Flags in ANSEM
On-chain observers, such as RugCheck, recently warned the crypto community about the likelihood of market manipulation behind the ANSEM token. The red flag primarily stems from the asset’s questionable distribution ratio.
Their findings indicate that the top 10 holders hold more than 70% of the token’s supply. Meanwhile, one user holds 58.66% of the float.
The dynamics present a classic case of extreme supply concentration, which risks a major liquidity crunch or a coordinated “rug pull” if those top addresses decide to dump their holdings on retail investors.
When a single entity or a small group of insiders controls a vast majority of a token’s circulating supply, it significantly limits the “free float” or the actual tokens available for public access. The incredibly small supply is reactive even to a minimal capital injection. It’s prone to price squeezes as a small pocket of buying pressure can trigger a sudden parabolic rally.
The Airdrop Before the Pump
Shortly after launch on Pump.fun, The Black Bull’s anonymous developer transferred 650 million ANSEM to crypto influencer Ansem, reportedly Zion Thomas in real life. Although the crypto personality had nothing to do with the token’s creation, he heavily promoted it on his platform and initially held approximately 65% of its total supply.
The content creator later airdropped a portion of ANSEM to several crypto wallets, framing it as a community giveaway. Along the way, the activity artificially amplified the token’s transaction volume and increased its number of holders while generating significant public interest.
On-chain investigators suspect that all that transpired so far was part of an elaborate market manipulation to drive ANSEM’s price up. They’re also probing the possible links of the crypto influencer to the ANSEM team, because after all, no one would randomly send millions of dollars’ worth of token supply to a third party without a pre-existing arrangement and without a clear benefit to the sender.
Weak Fundamentals
Critics raised the fact that ANSEM has no clear utility and its fundamentals are virtually weak. Lookonchain also revealed that the token’s anonymous creator only spent roughly $6,300 to deploy the memecoin project and made $5,500 from it.
Furthermore, for a token with over $100 million fully diluted market cap, it only had $1 million in actual liquidity. The very low liquidity risks of massive slippage should a huge wave of investors decide to cash out profits.
Arkham revealed that crypto influencer Ansem was up by more than $75 million on his ANSEM holdings following the pump.
