Side Wallet Detection
How we protect users from insider trading and exit liquidity schemes.
The Problem
Exit Liquidity Scheme
Some KOLs use "side wallets" - secondary wallets not publicly associated with them - to trade before or after making public calls. This allows them to profit at the expense of their followers.
Common Patterns
1. Pre-Call Buying
KOL buys a token with their side wallet, then promotes it to followers. When followers buy and price rises, KOL sells for profit.
2. Coordinated Dumps
KOL times their side wallet sales perfectly with peak follower buying, maximizing their exit at the expense of late buyers.
3. Multiple Wallets
Using multiple wallets to hide the total position size and make tracking more difficult.
Our Solution
On-Chain Analysis
XSCAN analyzes blockchain transaction data to identify wallets that may be linked to KOLs, even when they try to hide the connection.
Detection Methods
Transaction Pattern Analysis
We look for wallets that consistently buy tokens shortly before KOL tweets and sell during the resulting pump. Statistical analysis identifies suspicious timing correlations.
Wallet Clustering
We analyze fund flows between wallets to identify clusters that may belong to the same entity. SOL transfers, token movements, and shared DEX interactions are all considered.
Historical Analysis
We maintain historical data on KOL-linked wallets and cross-reference new addresses against known patterns. Suspicious wallets are flagged for review.
Community Reports
Users can report suspicious activity, which our team investigates. Community vigilance helps catch patterns our automated systems might miss.
Actions We Take
Flagging: Suspected side wallets are flagged on KOL profiles
Warnings: Users are warned when viewing flagged KOLs
Stat Adjustments: Side wallet trading may affect displayed metrics
Delisting: Severe or repeated violations may result in delisting
Our Commitment to Transparency
All blockchain data we analyze is publicly available. Our detection methods are designed to identify patterns, not to make accusations. We believe in:
- Giving KOLs the opportunity to explain flagged wallets
- Publishing methodology for community review
- Updating our systems based on new evasion techniques
- Protecting user privacy while maintaining accountability