ZachXBT: From Victim to Whistleblower, the Most Powerful Detective in the Cryptocurrency World

are Damidez

Cryptocurrency community members have expressed contrasting opinions regarding the reputation of on-chain detective ZachXBT. While some still view him as a champion of justice, others believe that the "dragon slayer" has ultimately transformed into a "dragon." In response to these claims, crypto analyst Damilare Damidez has published an article to support ZachXBT and shed light on the truth behind the controversy.

Recently, the launch of US President Trump's meme coin $TRUMP, followed swiftly by a token launch by his wife, generated significant buzz within the market. Amidst this meme frenzy, cryptocurrency trader Micki tweeted, "The busiest person in crypto for the next four years will be ZachXBT."

ZachXBT, known for his work with institutions to uncover fraud on the blockchain, commented on Micki's statement, highlighting his lack of compensation from such endeavors.

"One of my biggest regrets is not making money a priority," ZachXBT stated. "I wasted my time on things like this (helping recover funds) that didn't lead to any reward at all and only warped my perspective on doing good."

"Also, a few months ago, the US government got hacked and lost $20 million. I personally helped to recover a large portion of the funds. But in the end, I personally didn't get any reward."

These comments sparked the creation of a token by degen traders, named "Justice for ZachXBT" and denoted as ZACHXBT. Subsequently, ZachXBT received an airdrop of 50% of the token's supply (500,000 ZACHXBT).

Here's a breakdown of ZachXBT's handling of the token:

Increased liquidity by 50% :

ZachXBT added his airdropped token to a one-sided liquidity pool on Raydium. The token's market cap surged from $5 million to $80 million in two hours.

One hour later, ZachXBT extracted liquidity:

The diagram below illustrates the mechanics of a unilateral pool and liquidity extraction:

When you provide unilateral liquidity for a token on Raydium, the platform will automatically use the tokens you've deposited to purchase an equal amount of the paired token (e.g., SOL) from the pool, forming a balanced LP token.

When liquidity is removed, the fees you earn are automatically credited to your share of the pool. Hence:

Including the donation, the total is 16,348 SOL (valued at $3.87 million).

ZachXBT moved the 16,348 SOL, worth $3.8 million, to another wallet:

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ZachXBT then proceeded to send it to Wintermute.

Locking the fund pool:

ZachXBT then locked the liquidity pool and added 96 million ZACHXBT to it.

Additional Token Sale: ZachXBT also received 50% of the supply of another token, CRIME, which he sold for $57,000 (still in wallet).

Why did the token crash?

The token's collapse was not a result of ZachXBT's actions, but rather FUD and a lack of on-chain knowledge among traders. As soon as word spreads that liquidity is being pulled, many traders will instinctively panic and sell their holdings.

Analysis

ZachXBT's actions demonstrate responsibility:

The controversy largely stems from a lack of understanding rather than any malicious intent.

In conclusion

ZachXBT's handling of the $ZACHXBT token showcases a fair approach. The token was created to acknowledge his contribution, and he earned profits without leveraging his influence.

ZachXBT remains a hero, not a villain. The market simply requires more education on on-chain mechanics and liquidity dynamics.

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From victim to whistleblower: The story of ZachXBT, the most powerful detective in the cryptocurrency world