Blockchain investigator ZachXBT cashed out nearly $4 million in SOL after a memecoin was dropped to his wallet, igniting debate within the crypto community.
Background
- Following Zach’s earlier post about not prioritising finance, an address linked to blockchain sleuth ZachXBT received 500 million memecoins (50% of the total supply) from an anonymous developer on the Solana blockchain
- ZachXBT utilized half of the supply to add liquidity to the ZACHXBT/SOL pair and later withdrew approximately 91 million tokens along with 16,000 SOL, valued at $3.9 million
- After cashing out, ZachXBT burned the remaining memecoins and transferred the 16,000 SOL to an address tied to market maker Wintermute in an apparent OTC trade
- The memecoin’s market capitalization peaked at $97 million before crashing to $19 million following the liquidity withdrawal
Why should you pay attention?
- Community Debate: ZachXBT’s actions have sparked intense discussions. While some were in support of him doing the cash out deeming that he deserves the money made, others stood on the opinion that he still dumped on followers and his move was “scammy”
- Donation Movement: Following his post about not prioritizing making money, community members have contributed over $50,000 to a donation wallet for ZachXBT
Who said what?
- ZachXBT, on prioritizing finances:
“One of my biggest regrets here is not prioritizing making money. Doesn’t help I have little business sense.”
- Foobar, founder of Cluster, supported Zach:
“Zach deserves far more money than this for what he’s done for the space. Money’s in good hands now.”
- Yellow Doddle, an X user, criticized the move:
“Bro, adding liquidity then removing it is peak scammy behavior. There was no need to add LP; this is a rug.”
- Crypto Bitlord, renowned crypto enthusiast:
“Lmao, don’t matter how you word it, that’s plain dumping on your followers. Full clipping the same day is brutal.”
Zooming out
- The incident illustrates the fine line between monetizing influence and maintaining trust in the crypto space, especially for figures with significant followings
- While some hail ZachXBT’s contributions to blockchain transparency, others view his actions as an ethical misstep, raising questions about accountability in crypto markets
