TL;DR
- ZachXBT Cashes Out: Blockchain investigator ZachXBT cashed out nearly $4 million from a memecoin named after him.
- Market Impact: The token’s market cap dropped from $97 million to $19 million after ZachXBT withdrew 91 million tokens.
- Community Reactions: Mixed reactions emerged, with some criticizing the move as harmful to the memecoin community.
Well-known blockchain investigator ZachXBT has recently made headlines by cashing out nearly $4 million from a memecoin associated with his name. This unexpected move has sparked a heated debate within the cryptocurrency community about the ethics and implications of such actions.
The Memecoin Transaction
The memecoin, named “ZACHXBT,” was created by an unknown developer on the Solana blockchain. According to on-chain data, ZachXBT’s wallet, “investigations.sol,” received 500 million ZACHXBT tokens, which accounted for 50% of the total supply. Instead of holding onto the tokens or burning them, ZachXBT used half of the supply to add single-sided liquidity to the ZACHXBT/SOL trading pair.
Market Impact
The ZACHXBT token was launched less than 24 hours before ZachXBT’s liquidity removal. Initially, the token’s market capitalization reached a peak of approximately $97 million.
However, after ZachXBT withdrew nearly 91 million ZACHXBT tokens and the associated SOL from the liquidity pool, the market cap plummeted to roughly $19 million. Following this, ZachXBT transferred 16,000 SOL, worth about $3.9 million, to a new address before routing it to market maker Wintermute in what appears to be an over-the-counter (OTC) trade.
ZachXBT’s Regret
Addressing the situation, ZachXBT expressed regret over not prioritizing financial gains earlier in his career. He posted on social media, “One of my biggest regrets is not prioritizing making money.” He also mentioned feeling “cooked” and lamented the time spent on work that, in his words, “never rewarded me at all and only warped my view of doing good“.
Community Reactions
Reactions within the crypto community have been mixed. Some individuals criticized ZachXBT’s liquidity removal and cash-out as harmful to the memecoin community. Others defended him, arguing that his work in uncovering scams and helping users recover stolen funds justifies his earnings. The debate highlights the ethical dilemmas faced by influencers and investigators in the crypto space.
Ethical Implications
The incident has raised questions about the ethics of such transactions and the potential conflicts of interest for crypto influencers. Blockchain analytics play a crucial role in uncovering these financial moves, helping to flag potentially unethical transactions, and ensuring transparency within the industry.
