Investors Beware: Influencers Are Playing A Shill-And-Dump On Altcoins

As the crypto uncertainty becomes more and more visible, with Bitcoin failing to hold to the $26,000 level and a Fear and Greed Index of 35 (Fear), some crypto enthusiasts turned their heads towards the world of altcoins, and more preferably – the meme coin communities.

Memecoins became a hot topic after DOGE, the original memecoin, managed to climb to a secure spot in the top 10 crypto rankings and secured an $8,5 billion market cap. However, meme coins like SHIB and PEPE quickly gained traction and entered the top 100. In SHIB’s case, the memecoin managed to leap in front of projects like Bitcoin Cash (BCH), Stellar (XLM), and Monero (XMR), which once were among the top 10 best-performing cryptos in the world.

Now, ZachXBT, who is a crypto detective on Twitter, managed to raise a flag of concern, as he found out that several crypto influencers are preparing to shill their followers in return for cryptos and then dump them, thus – pushing the price per asset down.

According to the investigator, crypto influencers including TraderNJ, TraderSZ, Trader_XO, PetaByteCapital, and others, made a massive shill attack “by leveraging the names of other influencers to obtain free tokens from CBOT and BABYSHIB to dump on followers undisclosed.”

According to the chat in Telegram that ZachXBT posted, a potential 2.67 million people may fall victim to the pump-and-dump scenario.

“Aug 25 Peta & NJ began receiving BABYSHIB as compensation and began heavily shilling on Twitter shortly after hyping it up. Aug 30 they began unloading all of the tokens selling $115K+ over the next few days even though it is a lowcap. They currently do not appear to hold BABYSHIB. What happened to not selling anytime soon?” Zach noted, adding that “NJ & Peta had not followed the original deal as they did not onboard SZ or XO to market the project, did not make YouTube videos, and sold almost immediately after.”

ZachXBT did not stop there, as the investigator also published a schematic of how several influencers already did a 6-figure PAAL pump and dump scheme on their followers, including the path of transactions and the associated crypto wallets.

Who is ZachXBT

The crypto detective started his journey as a victim of a rug pull scenario. Now, he informs his 442 thousand followers about potential crypto scams and news that went under the radar of mainstream media outlets.

His investigations managed to stir a lot of controversy among the crypto community by exposing scammers and protecting regular crypto holders and investors since 2015.