Blockchain Analyst Accuses Crypto Influencers of Scamming
A blockchain analyst named ZachXBT has accused popular crypto influencers TraderSZ, Trader_XO, TraderNJ1, and PetaByte of engaging in fraudulent activities within the crypto space. According to his investigation, these influencers obtained tokens through illegitimate means, inflated their price, and subsequently sold them for profit.
The Actions of TraderNJ1 and PetaByte
ZachXBT’s investigation focuses on the actions of TraderNJ1 and PetaByte, who allegedly used other people’s identities to secure tokens such as CBOT and BABYSHIB. These tokens accounted for 8% and 3.5% of the total supply, respectively. The influencers claimed that these tokens would increase in value by 10-20x.
Once the price of these tokens soared, the traders quickly sold their share, making a total of $115,000. Consequently, the value of CBOT and BABYSHIB plummeted.
Pumping Scheme Involving TraderSZ and Trader_XO
The second part of the investigation focuses on a price pumping scheme involving TraderSZ and Trader_XO. TraderSZ received 4 million PAAL tokens, which initially had a value of around $0.028 according to CoinMarketCap. The price of PAAL reached a historical high of $0.046 but rapidly declined thereafter.
All four influencers actively promoted PAAL on social media, inviting users to invest in the project. Once the price surged, they sold off their assets. However, none of the influencers directly admitted any wrongdoing, with PetaByte claiming to still hold his PAAL tokens.
YouTuber Accused of Scamming
In addition to the crypto influencers, ZachXBT also accused YouTuber Blue or Jack of involvement in cryptocurrency scams. The YouTuber allegedly collaborated with phishing scammers and drainer services to steal over $1.5 million.
Hot Take: Breach of Trust and the Importance of Due Diligence
This incident highlights the importance of conducting thorough due diligence before investing in cryptocurrency. It serves as a reminder that trust should never be blindly placed in influencers or YouTubers, as they may have hidden agendas that prioritize their own profits. As a crypto reader, it’s crucial to verify the credibility of investment opportunities and to rely on reputable sources for information. Ultimately, protecting your assets requires a combination of caution, research, and skepticism.
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