On-chain investigator ZachXBT has accused well-known promoter Ansem of using memecoin pump-and-dump scams in the latest crypto controversy. The conflict started after the statement of the prominent cryptocurrency Murad Mahmudov sparked a discussion about the emergence of meme coins in the current market cycle.
The Twitter storm started when Andrew Kang of Mechanism Capital suggested that Mahmudov’s speech could trigger a new wave of memecoin investments. That’s where ZachXBT came in, and things quickly got heated.
It seems like @MustStopMuradToken2049’s speech created the next wave of reinvestment in memecoins
Popcat appears to be one of the beneficiaries of this cash flow – now on price discovery
Preparing to join the 4 legends of this cycle – BONK, WIF, PEPE,… pic.twitter.com/MLap3FwbZ9
— Andrew Kang (@Rewkang) October 5, 2024
The Dark Side of Memecoin Promotion
ZachXBT he pulled no punches. He accused big name promoters like Ansem of pumping new memecoins low over and over again because they have no real trading skills. According to Zach, they use their followers to make a quick profit. If someone with more than 500,000 followers mentions a small crypto project, it can send the price up. But when they stop talking about it, the price tends to crash back, leaving ordinary investors with worthless tokens.
He is indeed the guy who destroyed his wallet in March 2020 with his token down 80% last year and focused on promoting pump and dump.
— ZachXBT (@zachxbt) October 5, 2024
Crypto Influencer Fires Back
Ansem would have none of it. In his defense, he asserted that talking about small cryptocurrency programs is perfectly acceptable. He even boasted about his work with WIF, a memecoin whose value rose from $100,000 to $5 billion. However, Zach didn’t take long to remind him of the many coins he had advertised that ended up being worthless.
Big Picture
This fight isn’t just two guys arguing on Twitter. It shows a real problem in the crypto world. Influencers have a lot of power to move markets, especially for smaller cryptocurrencies. While some say they are giving people what they want – after all, memecoins are very popular right now – others worry that they are taking advantage of their fans.
ZachXBT describes his role as exposing fraud to people and helping to recover stolen funds. ZachXBT is one of the best-known negative trackers in crypto, as well as raising warnings about risky investments, and that Ansem focuses on potential profits, noting that he has helped people more than harmed them by providing them with trading opportunities.
The debate raises difficult questions about what is right and wrong in the promotion of crypto. When does sharing investment ideas cross the line into deception? It is very tricky because the crypto market is not regulated like traditional finance.
As the argument began to wind down, Ansem made a last-ditch effort to put in the last word, saying Zach was “exaggerating” and that they could “go back and forth with memes all day.” But at this point, the damage has already been done. This thread pulled back the curtain on the dark world of crypto influencers and the power these influencers wield over investment decisions among their loyalists.
Featured image from Pexels, chart from TradingView