Thread by @sainteclectic

@MilstGuga & I recently wrote a thread documenting what NFT marketplace @SolanArtNFT has made ($15m) & its listing habits.

Join us (@MattSolana @hoaktrades @secretpanda007) as we go down the rabbit hole of some of Solanart's accounts. After all, "blockchain is proof"🧵👇

Before we begin a shout-out to @MattSolana @hoaktrades @secretpanda007 & @Milstguga. Their analysis and digging helped me put this together.

There is a maze of transactions & linked accounts and we only scratch the surface here, so we could always use the help of more people.

Solanart take a 3% cut on all successful auctions. These fees automatically go to wallet E6dk...AuJH ("Solanart's Fee Wallet").

If you've ever sold an NFT on Solanart - open up your transaction and you will see the address come up, receiving a 3% cut of your listed price.

The Fee Wallet has transferred large amounts of SOL over the last month to HXAz...VCqg ("Intermediary Wallet A").

You can see all of the transfers here: solscan.io/account/HXAzoY…

In total, Solanart's Fee Wallet has transferred 30,672◎ to Intermediary Wallet A over the last few months.

Intermediary Wallet A's activity can be seen here: solscan.io/account/HXAzoY…

So what has it been up to?

Well, so far Intermediary Wallet A has transferred:

1) 2,471◎ to a wallet that bought 6 @BoldBadgerSquad NFTs ("Wallet of Badgers")

2) 200◎ to a wallet that minted 16 @DegenApe Academy apes ("DAA Mint Wallet")

3) 10,000◎ and $4m USDC to a 3rd wallet ("Storage Wallet")

"Hol' up, did you just say Solanart just funded a wallet that is buying NFTs on its own marketplace?"

Yes.

Lets us look deeper at this wallet (6y3Ap...tyJD), the "Wallet of Badgers" solscan.io/account/6y3Apm…

This wallet spent 792◎ to purchase 6 Bold Badgers for prices between 100◎ to 150◎.

This not a good look. Why?

Well if you recall, Solanart was the team who created Bold Badgers.

Here is an account directly funded by Solanart's fee wallet that was buying NFTs from a project it created itself.

"But @sainteclectic, maybe the account belongs to a team member who really loves their own product.

After all Bold Badgers did feature some groundbreaking art..."

Well consider that the Wallet of Badgers bought 5 badgers over 29-30th Aug with 652◎.

This accounted for 21% of traded Badger volume (in SOL) over those two days.

That's a lot for one account, let alone one linked to the very guys who created the project.

Also consider that the Intermediary purchased these Badgers at 100◎ to 150◎ when the average Badger price over those 2 days was between 16-26◎ - a good ~80% lower.

Even if you adjust for rarities this is a large discrepancy.

Today, the Badger floor price is 3.29◎.

To summarize, not only did Solanart use its own funds to buy the NFT it created:
- it did so on its own marketplace
- with size (20% of the 2-day SOL volume over 29-30 Aug) and
- at prices 80% higher than the average price on the day

Do these actions seem ethical?

I mean, we know that big looking sales / volume drive the market and can induce people to fomo in the market.

The crazy thing is that Intermediary Wallet A is not the only one.

There are in fact many other intermediaries that receive funds directly from the Solanart Fee Wallet.

One of these ("Intermediary Wallet B") has received 24,800◎ in total from Solanart. solscan.io/account/HB7ETk…

Intermediary Wallet B also received 279◎ from account 5SUC...jjjQ ("Wallet X").

This links Wallet X to Solanart as both their wallets transferred a large amount of ◎ into Intermediary Wallet B.

It's not conclusive but Wallet X's behaviour seems a little odd too...

Let's look at one example: Aurory#3211 (Token: explorer.solana.com/address/4MyZ2D…)
- It was sold on 2nd Sept for 218.5◎
- Wallet X then bought it for 237.5◎ a day later
- Wallet X listed for 150◎, then 130◎, then 110◎ til it finally sold

You could say Wallet X just speculated on Aurory and lost out.

But it's a large loss to wash away.

Especially when Aurory (a blue chip NFT) has a game planned and could be a big win long-term.

Lastly remember, Wallet X is directly linked to Solanart's wallets & activity.

In this thread we've focused on what's on the blockchain and shown you connecting links.

There could be valid explanations for what we've seen.

Having said that, how comfortable do you feel that the auction site you're listing on buys and sells NFTs, especially ones it created?

I'll conclude by saying that we are only scratching the surface - there are many of transactions to analyze in Wallet X and the other wallets linked to the Solanart Fee Wallet.

If you'd like to help, just follow the white rabbit...

solscan.io/account/5SUC89…

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