Renowned blockchain investigator ZachXBT has drawn both criticism and support after on-chain data revealed he banked $4 million from a coin associated with his name.
Blockchain data reveals that an address linked to ZachXBT, under the name investigations.sol, received half of the total supply of a newly minted coin. This is equivalent to 500 million ZACHXBT tokens. The token was created by an anonymous developer, on behalf of the investigator.
Instead of holding or burning all 500 million tokens, ZachXBT added half of the supply to the ZACHXBT/SOL trading pair as one-sided liquidity. Shortly after adding the tokens to the liquidity pool, the investigator withdrew nearly 91 million ZACHXBT tokens along with the corresponding SOL.
Less than 24 hours after the token’s launch, its market capitalization reached $97 million. However, following ZachXBT’s liquidity removal, the token’s value dropped sharply to around $19 million.
Additional on-chain analysis revealed that ZachXBT transferred 16,000 SOL, worth approximately $3.9 million, to a new address before transferring it to the market maker. Winter Mute. This appears to be an over-the-counter (OTC) transaction, signaling a strategic exit from the meme coin market.
ZachXBT: Hero or villain?
The famous blockchain investigator has long been recognized for his work report scams and fraud in the cryptocurrency space. He is particularly famous for his on-chain investigations that uncover questionable activities in the crypto world, such as Ponzi schemes and wallet mining.
ZachXBT’s detailed reporting has earned him a reputation as one of the most trusted figures when it comes to blockchain transparency and security.
The incident followed a conversation the investigator had with another X user, during which he revealed that his career goal unfortunately did not include the business acumen needed to generate income.
ZachXBT further revealed that although he played a key role in recovering a large portion of the funds from the US government’s October 2024 Bitcoin hack, he received no monetary compensation for his investigative efforts .
In response to the situation, some members of the crypto community suggested that ZachXBT sell some of the meme coins he had received. However, ZachXBT denied this suggestion, expressing concerns about the potential backlash that could follow such action.
Despite ZachXBT’s significant contributions to the crypto space, its decision to remove liquidity has drawn criticism. Some have even compared him to the fraudsters he strives to expose.
However, not all reactions have been negative, with some refraining from outright condemnation.
Some members of the crypto community have expressed support for ZachXBT. They argued that given his significant contributions to the space, including his efforts to expose fraud, he deserved the opportunity to benefit from the meme coin.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be considered financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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