On the wash trading of Lifinity Flares

We present evidence on the wash trading of NFT by people directly behind Lifinity. The team minted a large number of their own NFTs to create FOMO and inflated demand in the secondary market. A single wallet suspected to be belong to a core member of Lifinity and Synthetify alone minted 1150 of the 10,000 NFTs.

Wash trading is a crime in regulated markets.

Analyzing the data

  1. 5346 out of 10,000 NFTs were never touched after the mint. Note how a lot of NFTs carry the “minted 4 months ago” on Solscan, as opposed to “sold on magiceden”

  1. The top 10 holders have 33.18% of the Lifinity Flares. The top 5 being-
Address Flares held
8YY5LrwE1dyUwohuusNNJbqEXg9vGdUFXTqyQu7gZ6vn 1150
GQ7Wdm1Uj1NDbCeGhGReMKvd59Zzvr9hvmyY39pS1cmc 872
9M7ttEPYsx4eYRxPxQYCEdARSEegLV6UntmL2kDqvioT 345
52jTdrpRwiYGtMSUMnCFhcCjdEUMJRFSrb3YxQGiN1Vx 190
sfgt6jXbjoT4DV9WysSkHY5Xyt88rBBNvddytuhWA67 182
  1. 8YY5LrwE1dyUwohuusNNJbqEXg9vGdUFXTqyQu7gZ6vn which bought 1150 flares is Norbert Bodziony or a close asssociate of Synthetify.

    1. $SNY token account for this wallet is https://solscan.io/account/HJHg4Tob8vMkB5QAStdbcp8NeXV5HtMP5E3kUNJSaD6r. The oldest transactions are 10 month old, coinciding with Synthetify’s launch.

    Step finance reveals that the address has $1M worth of $SNY staked on Synthetify.

    1. Wash minting of 1150 Flares by 8YY5LrwE1dyUwohuusNNJbqEXg9vGdUFXTqyQu7gZ6vn

    1. It is likely that #2 and other addresses are shell accounts to buy more flares.

Methodology

  1. Fetch JSON data of the Flares collection from Solscan. Due to API constraints, we had to set a limit of 1000 per call and paginate 10 times. Responses are stored in the ./data folder
curl https://api.solscan.io/collection/nft?sortBy=nameDec&collectionId=e68bf9abf20e179549afa0205087a6f449db4527b575df0adb589542ac52fd52&offset=0&limit=1000
  1. Run 1-get-whales.js. This script loops through the collection to-

    1. Find NFTs with a trade count of 0, i.e. those which were never listed on an NFT marketplace such as Solscan.
    2. Find the owner of each NFT using
    curl https://api.solscan.io/token/holders?token=${mint}&offset=0&size=1
    
  2. Give the script some time. A map of owner address to ownership count is printed on console. The results are saved in unsold-owners.js.

  3. Run 2-biggest-whales.js to get the top 10 holders.

GitHub

View Github