Kled AI Moves 58.25 Million KLED Tokens Amid $500,000 Buyback Plan

Two wallets associated with the Solana-based Kled AI project moved a significant amount of KLED tokens, totaling 58.25 million, between May 31 and June 7. This movement occurred shortly after the project announced a $500,000 buyback plan, which included an initial purchase of $50,000. The tokens were dispersed across 99 new wallets, raising concerns about the project's transparency and financial management.

According to a report by Dashcoin Research founder Nicholas Wenzel, the tokens moved were valued at $800,000, significantly exceeding the initial buyback amount. On-chain analysis revealed that the KLED-related wallets converted most of these tokens into USDC and sold approximately $221,000 via ChangeNow, a cryptocurrency exchange service.

The wallets Ejc28…1ax15 and FopPe…d3UMR were identified as having a relation with the Kled AI team. On-chain data suggested this connection, as KLED’s deployer initially funded both wallets. Following the funding, these wallets received tokens from an address identified as responsible for liquidity provider rewards. Ejc28 received 30 million KLED and divided it among 56 wallets, while FopPe received 28.25 million KLED and divided it among 41 wallets. Only a fraction of these wallets received significant amounts, with most receiving less than $10,000.

The wallets that received relevant amounts of KLED began swapping these tokens for Solana (SOL), with the average correction during sales ranging between 2% and 3%. After converting the amounts, another batch of swaps occurred, converting most of the KLED tokens into USDC. This process took place between June 2 and June 12.

Kled AI founder Avi Patel confirmed the divestment in direct messages, stating that the team had significant expenses tied to aggressive 100-day milestones. Patel claimed that the team sold on buys to prevent market disruption. However, Patel also mentioned that Believe co-founder Ben Pasternak suggested liquidating the tokens, a point Pasternak allegedly denied in private messages. Despite addressing the token movements after public scrutiny, neither Patel nor the Kled AI team communicated with the community about the token movement.

The amount converted to USDC represents approximately 3% of KLED’s diluted supply, which is sufficient to impact prices significantly. As of June 13, several wallets held approximately $480,000 in USDC, converted from the 58.25 million KLED. Notably, one wallet still held roughly $65,000 worth of KLED, raising the total hold amount to $545,000. Additionally, 25 wallets had their $221,000 worth of USDC balances transferred to two different addresses associated with ChangeNOW, potentially indicating withdrawals to fiat currencies.

This incident highlights the broader debate surrounding token buybacks in the cryptocurrency market. Token buybacks are often marketed as the crypto analogue of corporate share repurchases, but they have divided market observers. Some projects, like Hyperliquid and Jupiter, have implemented buyback programs with varying levels of transparency and effectiveness. Supporters view these mechanisms as "flywheels" that can drive token value, while skeptics warn that they can veil insider offloads unless treasury flows remain fully transparent. Critics also argue that projects with sizable pre-mines can sell into their own bid, turning buybacks into exit liquidity rather than genuine yield.

Regulators have yet to address token buybacks directly, but legal analysts warn that nondisclosure of insider selling could invite enforcement actions analogous to those in equity market insider-trading cases. The Kled AI incident underscores the need for greater transparency and communication in token buyback programs to maintain investor trust and market stability.