- The anonymous investigator has already accused American YouTuber Logan Paul.
- ZachXBT claims that all of the Davis-backed projects had “awful” tokenomics.
ZachXBT, the on-chain sleuth, has once again found something of interest. Now he’s made some serious accusations against crypto industry heavyweight Lark Davis. However, the latter insists that his actions were appropriate.
The anonymous investigator has already accused American YouTuber Logan Paul of supporting a number of “pump and dump” scams. It was claimed that the influencer was using NFT initiatives to exploit his audience.
ZachXBT claims that Davis pushed low-cap projects eight times before dumping them on the community without warning. He allegedly made $1 million as a result of this.
Pump and Dump?
In the first incident, which occurred in February 2021, 62,500 UMB tokens were sent to an address associated with Davis immediately after its promotion. Shortly after the ad campaign ended, the wallet dropped them, resulting in a $136,000 profit. According to ZachXBT’s analysis, Davis reportedly made $56,000 by selling the assets he had promoted just a few hours earlier. This trend was also seen for DOWS tokens.
Since then, Davis is said to have promoted and sold off a portion of the tokens he was given to promote SHOPX, BMI, PMON, XED, and APY following their respective launches.
ZachXBT claims that all of the Davis-backed cryptocurrency projects had “awful” tokenomics, which is why many of them “went to zero” before the bear market hit. As long as everything is done openly, he said, it is perfectly OK for crypto influencers to take part in seed rounds and promote enterprises they actually appreciate. But he laid the responsibility on Davis for abandoning his “discounted launchpad bags right after shills across YT, Twitter, and newsletter.”
First, let’s be clear that each of these examples are token sales. I simply sold the tokens when they launched, which is common investing practice for token sales. I teach this concept frequently to you all, none of this should be a surprise if you’ve have been paying attention.
— Lark Davis (@TheCryptoLark) September 29, 2022
Davis responded to the claims by stating that he did, in fact, sell tokens at the time of their release and that this behavior is typical of an “investing practise for token sales.” The crypto influencer slammed ZachXBT’s claims as “ridiculous” and making “zero sense,” explaining how he had made money in every scenario ZachXBT had cited, and asserting that he just uses the same investing method he preaches.
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