According to on-chain data and social media commentary reported by Coin Telegraph, the project, known as FOCAI, reached a $50 million market capitalization within minutes of launch but has since seen its price and valuation decline amid concerns over trading practices and the token’s underlying integrity.

On-chain analytics posts shared on X indicate that at least 15 wallets suspected of being insiders collectively spent 67.16 SOL—valued at approximately $14,600 at the time—to purchase 605 million FOCAI tokens, or about 60.5% of the token’s total supply. These transactions occurred on Raydium, a decentralized exchange on Solana, and were then followed by the sale of all FOCAI tokens for 94,175 SOL, worth around $20.5 million when the trades were completed. Blockchain observers say this netted the suspected insiders a profit of roughly $20.48 million.

The alleged insider trades – Source: https://x.com/lookonchain/status/1875442527698116750

A follow-up correction from an analytics account states that these acquisitions were not isolated to ordinary buyers but were conducted by members of the FOCAI team itself using various wallets. The revelation has sparked swift backlash across the crypto community on X, with participants expressing skepticism and alarm at the scale of the reported gains. One widely circulated post detailed how a single address turned an investment of roughly $1,168 into $3.47 million in just three hours.

Market data also shows that FOCAI enjoyed a remarkable debut, hitting a $50 million market capitalization in only 11 minutes. Trading volume reached $48.2 million within the first 47 minutes of the launch, reflecting a high level of initial interest in the AI-themed token. However, prices fell significantly after news of the alleged insider trading emerged; FOCAI’s price currently hovers near $0.327, with its market cap slipping to $32.7 million.

Concerns over FOCAI’s legitimacy intensified when a crypto analyst labeled the project a potential scam on X. According to that post, the codebase behind FOCAI appears to be heavily derived from an existing token known as Eliza, with minimal modification or addition of genuine blockchain functionality. The analyst’s report cites extensive use of popular terms such as “AI” and “blockchain” in FOCAI’s marketing yet alleges that the project lacks technical evidence to back those claims. The same report also flagged inconsistent or incomplete documentation across various languages, as well as missing token economics and unclear smart contract implementations.

Those findings mirror additional warnings from other observers. Some note that the code was heavily forked, that key security measures appear absent and that there is little sign of any truly decentralized architecture. The discovery of an apparent insider strategy for acquiring and later selling the majority of FOCAI tokens has further fueled doubts about the project’s transparency, raising questions about how decentralized or fair the token’s launch actually was.

Market data from Pump.fun indicate that most traders who participated in FOCAI did not profit significantly, highlighting the skewed nature of such maneuvers.