Shortly after the launch of SatoshiVM's SAVM token, it saw a remarkable surge in market value, reaching a market capitalization of nearly $90 million. However, this rapid ascent was swiftly overshadowed by controversy within the cryptocurrency sphere. The controversy stemmed from a small number of wallets holding a significant portion of the initial token supply, leading to a large-scale sell-off totaling millions of dollars immediately after the token's launch.

SatoshiVM describes its protocol using both popular and somewhat obscure terminology in the cryptocurrency sphere. The SAVM token is associated with a layer-two Bitcoin protocol that utilizes an advanced technology called zero-knowledge rollup. Essentially, this technology enables transactions to be settled on the Bitcoin network without the need to share excessive data with network validators.

The controversy emerged shortly after the token went live on January 19th. On-chain analysis tools revealed that 15% of the token supply was transferred to a few wallets, purportedly owned by influential market participants, who promptly sold their tokens. Several prominent investors who participated in SatoshiVM's private sale admitted to selling their tokens immediately, sparking scrutiny and raising questions about the motivations behind such rapid sell-offs.

A report by @Lookonchain disclosed that one wallet received SAVM tokens from the SatoshiVM team's wallet and sold tokens worth $1.2 million within the first 48 hours of issuance. Despite facing accusations, SatoshiVM has denied any wrongdoing and has organized a community question-and-answer session to directly address these concerns.

Following their AMA on Twitter Spaces, SatoshiVM faced even more severe criticism, particularly from Yago of Sovryn, who claimed that the protocol could not function as intended. This led to a rapid decline in price, dropping from a peak of $9 to below $5 within an hour. It remains uncertain whether SatoshiVM will be able to recover from the onslaught of fear, uncertainty, and doubt and regain the trust of the cryptocurrency community.