Prominent Crypto Traders Accused of Pump-and-Dump Scheme
A well-known blockchain investigator, ZachXBT, has accused four popular crypto traders of participating in a pump-and-dump scheme. The traders at the center of the controversy are TraderNJ, PetaByte, XO, and Trader SZ, who allegedly profited while their followers suffered.
The crypto industry is plagued with influencers who engage in shady promotion deals without transparency, causing harm to projects and their supporters. It can be challenging to distinguish between legitimate projects and scams in an industry where new products and strategies are constantly emerging.
Latest Exposé: Trader NJ and PetaByte
ZachXBT’s first exposé focuses on Trader NJ and PetaByte, who are accused of engaging in deceptive practices with multiple crypto projects. They allegedly used the identities of influential individuals to obtain free tokens from projects like CBOT and BabyShib, which they later sold to their unsuspecting followers.
Telegram messages provide evidence of Trader NJ and PetaByte requesting a significant portion of the CBOT token supply for promotional purposes. Similarly, discussions between PetaByte and the BabyShib team confirm negotiations for marketing efforts in exchange for a percentage of the token supply.
Trader NJ and PetaByte allegedly generated hype around these tokens and then quickly sold them, contradicting their earlier claims of not intending to sell anytime soon. Text messages and token receipts reveal that they received BABYSHIB tokens as compensation, despite Trader NJ’s denial of engaging in paid promotion.
Part 2: Trader SZ and Trader XO
The second part of the exposé focuses on Trader SZ and Trader XO’s involvement in a pump-and-dump scheme related to the PAAL AI token on the Ethereum network. Initially, they distanced themselves from the CBOT controversy but were later discovered to be actively promoting PAAL.
ZachXBT found that Trader SZ and Trader XO linked their wallet addresses from the CBOT and BABYSHIB schemes to PAAL, making their involvement traceable. They collaborated with Trader NJ and PetaByte to aggressively promote PAAL on Twitter, as confirmed by the official PAAL Twitter account.
Trader SZ dumped all of his PAAL tokens for over $130k, while Trader NJ claimed to still believe in PAAL but had already sold all of his tokens for over $120k.
Hot Take: Crypto Influencers Must Be Held Accountable
The recent exposé by ZachXBT sheds light on the unethical practices of prominent crypto traders involved in pump-and-dump schemes. It highlights the need for transparency and accountability in the crypto industry.
Crypto influencers play a significant role in shaping the market and influencing investor sentiment. It is crucial to hold them accountable for their actions and ensure that they act in the best interests of their followers and the projects they promote.
Investors should be cautious and conduct thorough research before following the advice or recommendations of crypto influencers. Transparency and honesty are essential in building trust within the crypto community and fostering a healthy and sustainable market.
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