Premeditated Obfuscation? Bubblemaps Accuses Edel of Token Sniping

Blockchain analysis firm Bubblemaps has accused Edel Finance of sniping 30% of its EDEL token supply during its November 12 launch, a move the protocol's co-founder has denied, calling it part of planned token allocation strategies. The firm alleges that a cluster of 160 linked wallets executed the purchase through coordinated funding from exchanges like Binance and MEXC, accumulating $11 million worth of tokens in a tactic consistent with automated bot-driven "sniping". Bubblemaps further claims the tokens were obfuscated through layered wallet structures and liquidity positions, creating a "maze" to conceal the acquisition according to analysis.

Edel Finance's co-founder, James Sherborne, refuted the allegations, stating the team had acquired 60% of the token supply, which was subsequently locked into vesting contracts as outlined in public documentation. He criticized Bubblemaps' analysis as a "Hayden Davis defense", referencing the controversial memecoin creator who faced backlash for undisclosed insider allocations. Despite the denial, Bubblemaps highlighted inconsistencies, noting the token contract itself contained direct links to the secondary wallets used in the snipe, suggesting premeditated obfuscation.

The controversy has coincided with a sharp decline in EDEL's market performance. The token's market cap has dropped 62% to $14.9 million over the past week, trading at $0.02937. Analysts attribute the downturn to eroded trust and regulatory scrutiny, as the case adds to ongoing debates over transparency in tokenomics and decentralized finance (DeFi) projects. Edel Finance, which aims to bridge traditional stocks with on-chain lending, faces heightened pressure to address governance concerns amid a broader crypto market slump.

The incident underscores growing tensions between blockchain analytics firms and DeFi protocols. Bubblemaps' public thread detailed how the sniping operation unfolded, including the use of Uniswap liquidity positions (NFTs) to further mask token movements. Meanwhile, the SEC's recent regulatory shifts-allowing some decentralized infrastructure (DePIN) startups to offer tokens without registration-have sparked warnings from traditional exchanges like Nasdaq and Deutsche Boerse, which argue such exemptions could undermine market integrity.

As the debate unfolds, Edel Finance's case may influence how regulators and investors assess token distribution practices. The protocol's defense hinges on pre-launch disclosures, but critics argue that even "planned" allocations require clearer communication to avoid perceptions of unfair advantage according to experts. For now, the EDEL token remains a focal point in the broader conversation about accountability in emerging crypto markets.