Originally published on: October 07, 2024
Popular blockchain detective Zachary Wolk, also known as ZachXBT, has called out crypto influencer Zion “Ansem” Thomas for his alleged involvement in promoting a series of memecoin “pump and dumps.”
In a fiery exchange on X platform on October 5th, Wolk and Thomas engaged in a debate regarding Thomas’ role in endorsing a variety of “low cap” Solana memecoins. Wolk pointed fingers at Thomas after mentioning his participation in memecoin advocate Murad Mahmudov’s recent “Memecoin Supercycle” speech at Token 2049, accusing him of pushing coins to his followers without a genuine market advantage.
Mahmudov, formerly associated with the collapsed crypto hedge fund Adaptive Capital, has gained a significant following on X by advocating for memecoins and sharing his top picks in the space.
Wolk criticized Thomas for frequently promoting new low cap memecoins to his large number of followers, suggesting that this behavior indicated a lack of an edge in the market on Thomas’ part.
How talking about low cap memecoins may have adverse impacts on followers was questioned by Thomas. Wolk emphasized the massive influence Thomas, with over 507,000 X followers, holds over tokens with smaller valuations, potentially leading to losses for followers chasing memecoin pumps.
In his defense, Thomas highlighted his previous recommendation of Dogwifhat (WIF) at a $100,000 market cap, which later surged to a peak value of $4.8 billion in March, contrasting it with promoting a utility-based token like Chainlink (LINK) that has been on a downtrend against Bitcoin this year.
However, Wolk countered by accusing Thomas of endorsing numerous low-cap coins, including BODEN, HOBBES, ZEUS, and WYNN, as well as celebrity memecoins associated with stars like Jason Derulo and Davido.
Amidst the heated discussion, Thomas argued that the interest in “low cap garbage” memecoins has dominated retail investment in crypto, indicating the demand for such tokens despite their high risks.
The debate over memecoins continues to divide the crypto community, with advocates citing their high returns compared to utility tokens, while critics warn of the risks associated with investing in fundamentally worthless assets like memecoins. Nonetheless, the allure of memecoins remains strong in the crypto space, prompting questions about their true purpose and impact on the industry.
Will memecoins continue to stir controversy, or will their influence reshape the future of crypto investment? Only time will tell in this evolving digital landscape.
