- ZachXBT accused Ansem of promoting memecoins, raising alarms about potential “pump and dump” schemes in the crypto space.
- Ansem claims his memecoin promotions, like Dogwifhat, offer valuable opportunities, but Zach warns of the risks for followers.
- This debate highlights the ethical concerns of influencer practices in crypto, questioning where promotion ends and manipulation begins.
In a clash on X, blockchain investigator ZachXBT accused crypto influencer Zion “Ansem” Thomas of promoting memecoins through questionable practices. Ansem, who boasts over 507,000 followers, allegedly engaged in “pump and dump” schemes, promoting numerous low-market-cap memecoins.
Consequently, many of these coins experienced dramatic losses, with BODEN plummeting nearly 99% since April's peak. The heated exchange highlights issues within the crypto community regarding influencer accountability.
The Accusations Unfold
ZachXBT initiated the discussion by referencing a speech from memecoin advocate Murad Mahmudov at Token 2049. He criticized Thomas for allegedly promoting low-cap Solana memecoins without any real market edge.
Mahmudov gained popularity by promoting memecoins, which has led to a thriving following on social media. Zach asserted that Thomas’s frequent promotion of low-cap tokens indicates a lack of genuine trading skills. Instead, Thomas appears to leverage his followers for profit.
In response, Ansem questioned why discussing low-cap tokens constituted “grifting.” However, Zach reiterated the potential risks, emphasizing how influential figures can sway prices dramatically. When a large account promotes a lesser-known coin, it can send prices soaring. However, once the promotion fades, the prices typically crash, leaving unsuspecting investors holding worthless assets.
Memecoins and Market Influence
Ansem defended his strategies, pointing to his success with Dogwifhat (WIF), which surged from a $100,000 market cap to $4.8 billion. He argued that this approach was more beneficial than promoting utility-based tokens like Chainlink (LINK), which is down year-to-date. Nevertheless, Zach countered this point by highlighting numerous coins Thomas had promoted that lost nearly all their value.
The ongoing debate between these two figures emphasizes a growing concern within cryptocurrency. Influencers have the power to influence market dynamics, especially for small-cap cryptocurrencies. This situation raises critical questions about the ethics of promoting such tokens. While some may argue that influencers merely cater to demand, others fear they exploit followers for quick gains.
The total crypto market cap is currently at $2.1 trillion. Chart: TradingView
Furthermore, ZachXBT positions himself as a protector against crypto fraud. He claims to expose scams and aid victims in recovering stolen funds. Conversely, Thomas maintains that he has provided valuable trading opportunities, helping many navigate the volatile market.
The Need for Clarity
This public confrontation exposes deeper issues related to influencer practices in cryptocurrency. The blurred lines between sharing investment advice and manipulating market prices create a challenging landscape. Moreover, the crypto market’s regulatory environment lacks the safeguards present in traditional finance, further complicating the issue.
As the debate concluded, Ansem attempted to downplay the conflict, asserting that the discussions could continue indefinitely. Nevertheless, this exchange has illuminated the complex dynamics at play in the crypto community and the critical role influencers hold in shaping investment decisions.
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