Caught in the meme coin controversy! Is ZachXBT cashing out $4 million a hero or a villain?

Yesterday, the on-chain detective ZachXBT sparked controversy for his involvement in the 'Justice for ZachXBT' meme coin project. Despite some users questioning the transparency of his actions, supporters emphasize his years of unpaid contributions to the encryption industry and demonstrate community support for his work through fundraising activities.

(ZachXBT exposes North Korean hacker criminal network, posing as developer infiltration team to embezzle funds: earning 500,000 USD per month)

Meme coin $ZACHXBT event sorting

Analyst Damilare Damidez's tweet yesterday explained in detail the relationship between the meme coin $ZACHXBT and ZachXBT, as well as the whole incident. The following will translate the details.

$ZACHXBT's Birth and Airdrop

Firstly, to express gratitude for ZachXBT's contributions to investigating various scams and fundraising incidents in the blockchain field, an anonymous individual has issued a meme coin called $ZACHXBT, which is seen as a tribute to his years of unpaid work.

In the morning of that day, Zach received an airdrop of 50% of the token's supply (approximately 500 million tokens), seemingly as a reward for his contributions.

Zach's transaction details

Later, Zach also carried out a series of on-chain operations:

Add liquidity: Zach will add the tokens received to the single-sided liquidity pool of Raydium, and quickly drive the market value of $ZACHXBT from 5 million to 80 million US dollars in just two hours.

Withdrawal of Liquidity: After one hour, he withdrew a total of 91 million $ZACHXBT and 16,000 $SOL from the liquidity pool in two separate transactions (valued at approximately 3.87 million USD at the time). The withdrawn SOL was then transferred to another wallet and eventually sent to the encryption market maker Wintermute.

Re-add liquidity: After the withdrawal is completed, ZachXBT re-added 96 million $ZACHXBT to the liquidity pool and locked the liquidity pool, indicating that he has no intention of malicious Rug Pull.

The main reason for the token price collapse: the community scares itself

Damidez believes that the price collapse of $ZACHXBT tokens is not due to Zach's actions, but to market panic and investors' lack of understanding of the on-chain operation mechanism. Once news of 'liquidity being drained' is released, panic selling will occur, causing prices to plummet.

Damilare Damidez: Zach is very responsible

He also emphasized at the end of the article that Zach's actions are responsible operations, including "adding liquidity to the trading pool, and transparent and reasonable redemption".

The original intention of the token's establishment is to commend his contribution. He even only withdraws 10% of the funds as income, which is a reasonable range for his long-term contribution. He is still a hero of the community, not a villain, but the community still needs to strengthen its understanding of on-chain mechanisms and liquidity instead.

In addition, 'this controversy is more due to the market's misunderstanding and panic about its behavior, rather than ZachXBT's behavior.'

Defi Ignas, Joey Moose speaks out in support

This incident has also attracted the attention of many encryption KOLs, who have emerged to defend Zach.

DeFi researcher Ignas pointed out that ZachXBT's recent posts about 'can't hold on, efforts did not get the expected return' are worrying, and he expressed helplessness:

Honest actors often do not receive the deserved returns, while speculators can easily profit. It is very difficult to achieve a morally and honestly profitable model in the encryption field.

Clusters founder Foobar also stated: 'Zach should receive more rewards. His contribution to this industry far exceeds this. It's sickening to speculate in tokens launched in his name, and such behavior should be sanctioned. Now, at least this money is in the right hands.'

On the other hand, in order to support Zach's investigation work, Joey Moose, a well-known investor in Pudgy Penguins, launched a fundraising campaign yesterday, calling on the community to donate through BTC, ETH, and Solana networks, and promising to hand over the raised funds directly to Zach.

As of 7 hours ago, the fundraising amount had already exceeded $65,000, demonstrating the community's support for its work.

This article is involved in the meme coin controversy! ZachXBT cashed out $4 million, is he a hero or a villain? First appeared on Chain News ABMedia.