An on-chain address tied to famed blockchain investigator ZachXBT has recently sparked waves of discussion after cashing out on a newly created memecoin.
According to on-chain data, and Lookonchain report, the address investigations.sol received a staggering 500 million memecoins, representing 50% of the total supply.
These tokens were distributed by an unknown developer, and instead of burning or holding onto them, ZachXBT reportedly used half of the supply to add single-sided liquidity to the ZACHXBT/SOL pair.
The Crypto Industry in Shock
This move by ZachXBT raised eyebrows in the crypto community as it brought significant market action to the newly deployed ZACHXBT token, which was launched less than 24 hours ago.
The token reached a market capitalization of nearly $97 million before ZachXBT withdrew approximately 91 million ZACHXBT tokens and their associated SOL from the liquidity pool. This resulted in the token’s market cap plummeting to roughly $19 million, highlighting the volatility of such memecoins and their liquidity-driven market cap swings.
OTC Trade and Transfer to Wintermute
After the liquidity pull, investigations.sol transferred 16,000 SOL, valued at around $3.9 million, to a new address tied to the market maker Wintermute.
This transfer appeared to be part of an over-the-counter (OTC) trade, fueling speculation about the potential motives behind the actions of the famed sleuth.
ZachXBT’s decision to move such a large quantity of tokens and SOL has triggered mixed reactions. Some in the crypto space believe he may have acted in his best interest given the chaotic nature of memecoin markets, while others argue that ZachXBT should have shown more caution with the funds.
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ZachXBT, who has been open about his desire to earn more money, stated publicly on social media, “One of my biggest regrets is not prioritizing making money.”
He further reflected on his past work in the blockchain investigation space, lamenting how his efforts had “wasted time” and “never rewarded me at all.”
ZachXBT’s Role in Crypto Investigations
ZachXBT has long been regarded as a prominent figure in the cryptocurrency community, especially for his investigative work. His ability to uncover fraudulent activities, track illicit transactions, and expose scam projects has earned him significant respect within the space.
Over the years, ZachXBT has successfully unearthed numerous schemes, including scams involving compromised social media accounts that promoted fraudulent memecoins.
Most recently, ZachXBT unveiled a detailed investigation into a threat actor named “Serpent,” a former professional Fortnite player turned scammer. Serpent was reportedly involved in orchestrating fraudulent schemes that amounted to over $3.5 million.
Through his work, ZachXBT has brought attention to the vulnerability of social media platforms as a breeding ground for crypto scams and fraudulent activities.
ZachXBT has also gained notoriety for his accusations against influencer Zion “Ansem” Thomas, alleging that Thomas was involved in orchestrating a series of memecoin “pump and dump” schemes.
These schemes were reportedly pushed to Thomas’ followers, resulting in significant financial losses. The controversy over this situation erupted during a heated exchange on social media, further proving the volatile and contentious nature of memecoin projects.
The Mixed Reactions and Future of ZACHXBT Token
The reactions to ZachXBT’s memecoin cash-out are divided. On one side, many in the crypto community believe that ZachXBT deserves more recognition for his contributions to the industry.
His efforts in uncovering scams and bringing awareness to malicious actors have undoubtedly helped protect countless investors from falling victim to fraud.
On the other hand, his recent actions with the ZACHXBT token and the liquidity pool have raised questions about the ethical considerations of blockchain investigators and influencers in the crypto space.
As ZachXBT continues to navigate his role as a key figure in crypto investigations, the industry will likely continue to watch his every move with a sense of curiosity and scepticism.
Also Read: Crypto Sleuth ZachXBT Uncovers $6.5 Million Phishing Scammer, Impersonating Coinbase Support