Crypto influencer ZachXBT reveals deceptive practices by CBOT and BabyShiba token promoters, sparking concerns about transparency and integrity in the crypto community.
Key Points
- Crypto influencer ZachXBT exposes deceptive tactics by CBOT and BabyShiba token promoters.
- Allegations include undisclosed token sales and influcrencers misleading followers about their investments.
- ZachXBT shares wallet addresses for verification and sparks concerns about crypto influencers exploiting followers.
- Despite a defamation lawsuit, ZachXBT receives substantial support, highlighting the crypto community’s commitment to transparency.
In a series of tweets, ZachXBT has brought to light alleged deceptive promotional tactics by certain crypto influencers surrounding the meme CBOT and Shiba Inu family BABYSHIB tokens.
1/ Part 1 of an breakdown into how @TraderNJ1 @PetaByteCapital have deceived multiple projects by leveraging the names of other influencer to obtain free tokens from CBOT and BABYSHIB to dump on followers undisclosed. pic.twitter.com/BllmaDzDO5
— ZachXBT (@zachxbt) September 10, 2023
The Allegations
ZachXBT revealed that an individual named Icarus provided him with specific wallet addresses purportedly linked to the CBOT team’s token transactions. It was discovered that a significant portion of these tokens were sold off within a short span of 1-2 weeks.
The central issue raised by ZachXBT is that influential figures like Trader NJ and PetaByte, who were actively promoting these tokens, did not disclose that they were compensated with a percentage of the token supply.
Instead, they presented themselves as unbiased investors, misleading their followers into believing they had personally invested in the projects.
Additional Claims
ZachXBT further alleges that these influencers leveraged the names of other notable figures in the crypto community to negotiate a larger percentage of the token supply.
Additionally, they provided false information to projects and then acted innocent when confronted
ZachXBT shared wallet addresses associated with both BABYSHIB and CBOT tokens, allowing for independent verification of his claims.
Reactions from the crypto community
The crypto Twitter community quickly responded to these revelations. AGT_D10S expressed concern that many high-profile figures in the crypto world might be exploiting their followers, using them as an exit strategy for their investments. ZachXBT agreed with this observation.
ZachXBT, known for exposing scams and deceptive practices in the crypto realm, has previously investigated the FTX hack. He clarified that the Bahamian authorities did not orchestrate the attack and exchanges did not know the hacker’s identity.
He provided evidence that the hacker’s wallet address was distinct from those affiliated with FTX or the Securities Commission of the Bahamas (SCB).
ZachXBT also debunked the narrative that Kraken had identified the hacker, suggesting that the individual identified was merely helping FTX secure assets.
He refuted rumors about the FTX hacker trading memecoins, citing potential spoofed Ethereum network transactions.
Despite facing a defamation lawsuit, ZachXBT has received over $1 million in donations from industry giants like Binance CEO Changpeng Zhao and Kraken co-founder Jesse Powell.
This support highlights the crypto community’s commitment to truth and transparency.
Concluding Thoughts
These recent revelations emphasize the need for transparency and ethical practices in the rapidly evolving crypto space.
Influencers yield significant power over their followers’ investment decisions, making it essential for them to disclose any compensation they receive and to act honestly.
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