On-chain investigator ZachXBT has accused well-known influencer Ansem of running a memecoin scam in the latest cryptocurrency controversy. The conflict began after the statement of prominent cryptocurrency figure Murad Mahmudov sparked discussion about the emergence of digital currencies in the current market cycle.
A Twitter storm began when Andrew Kang of Mechanism Capital suggested that Mahmudov’s speech may have sparked a new wave of comments. com. memecoin Investments. That’s when ZachXBT stepped in, and things got heated quickly.
It seems as if @MustStopMuradThe Token2049 talk has spurred the next wave of capital reallocation to memecoins
Bobcat appears to be one of the beneficiaries of these capital inflows – now in the price discovery business
Preparing to join the four greats in this course – BONK, WIF, PEPE,… pic.twitter.com/MLap3FwbZ9
– Andrew Kang (@Rewkang) October 5, 2024
The dark side of Memecoin promotion
ZackXBT He didn’t pull any punches. Big name influencers like Ansem have been accused of repeatedly pumping out new memecoins with low capitalization because they lack real trading skills. According to Zach, they only use their followers to make quick profits. When someone with more than 500,000 followers talks about a small cryptocurrency project, it can cause prices to skyrocket. But once they stop talking about it, the price often collapses again, leaving ordinary investors holding worthless tokens.
He’s definitely the guy who blew up his fund in March 2020 with his token down 80% in the past year and focused on promoting pumps and dumps.
– ZackXPT (@ZackXPT) October 5, 2024
The cryptocurrency influencer is back
Ansem would have none of it. In his defense, he asserted that the talk was about a minor Cryptocurrency Initiatives are completely acceptable. He even bragged about his work with WIF, a meme coin that has increased its value from $100,000 to $5 billion. However, it didn’t take long for Zack to remind him of the many other coins he had advertised that had turned out to be worthless.
The bigger picture
This fight isn’t just about two guys arguing on Twitter. It shows a real problem in the crypto world. Influencers have tremendous power to move markets, especially for smaller cryptocurrencies. While some say they’re just giving people what they want — after all, meme coins are very popular right now — others worry they’re exploiting their followers.
ZachXBT describes his role as exposing scams to people and helping recover money that has been stolen. ZachXBT is one of the most notorious evil trackers in the cryptocurrency space, and in addition to raising warnings about risky investments, Ansem is focused on potential profits, stating that he has helped people far more than he has harmed them by offering trading opportunities.
The debate raises difficult questions about what is right and wrong in promoting cryptocurrencies. When does sharing investment ideas turn into manipulation? It’s especially difficult because the cryptocurrency market is not as regulated as traditional finance.
As the argument began to wind down, Ansem made a final attempt to get the last word, stating that Zach was “exaggerating” and that they could “go back and forth on memes all day long.” But at this point, the damage is done. This topic has pulled back the curtain on the sometimes murky world of cryptocurrency influencers and the power these influencers wield over investment decisions among their believers.
Featured image from Pexels, chart from TradingView
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