A Solana based artificial intelligence token known as Ava has suffered a sharp market collapse after on chain analysis raised concerns over how its supply was accumulated at launch. The token has fallen more than ninety six percent from its peak, erasing most of its early valuation after data suggested that a large share of the circulating supply was acquired by a small cluster of linked wallets. According to blockchain analytics findings, roughly forty percent of Ava’s total supply was accumulated at launch by wallets connected to the token deployer, despite the project being marketed as a fair and community oriented release. The token initially gained attention as an AI themed project linked to virtual agent development and briefly reached a fully diluted valuation in the hundreds of millions during the early phase of enthusiasm around AI focused digital assets.
Analysis of wallet activity indicates that multiple addresses were funded shortly before launch, displayed no meaningful transaction history, and purchased Ava immediately once trading began. These wallets received similar amounts of Solana tokens and executed near identical trading behavior, patterns that analysts say are consistent with coordinated strategies rather than independent market participation. This practice, often referred to as sniping, involves automated systems purchasing newly issued tokens the moment liquidity becomes available. While such activity is not prohibited in most crypto markets, it can result in extreme supply concentration that exposes retail participants to elevated downside risk. When a small group controls a significant share of tokens, any decision to sell can place heavy pressure on price and liquidity, particularly in thin or early stage markets.
The impact of this structure has become increasingly visible in Ava’s trading performance. After peaking earlier this year, the token has steadily declined and now trades near levels that reflect a near total loss of initial gains. The decline has occurred even as the project continues to promote development progress related to AI driven virtual characters and digital content tools. Market participants have pointed out that technological development alone is often insufficient to support token value if ownership concentration undermines confidence and price stability. The episode has added to broader scrutiny around token launches that claim decentralization while relying on mechanisms that allow early insiders to secure outsized positions. As investor attention shifts toward transparency, distribution mechanics, and governance, cases like Ava are reinforcing concerns about structural risks in emerging token markets and the gap between marketing narratives and on chain realities.
