ZachXBT Issues Warning on ZEUS Token, Citing Founders’ Links to Market Manipulation

A serious on-chain transaction by the well-known crypto whale James Wynn has drawn renewed scrutiny to the ZEUS meme coin, as outstanding blockchain investigator ZachXBT has issued a public warning concerning the venture’s founders.

The controversy ignited after on-chain knowledge confirmed Wynn spent 39 ETH (roughly $104,000) to buy 2.446 trillion ZEUS tokens. The warning highlights the creators’ previous hyperlinks to an organization that brazenly promoted market manipulation methods.

ZEUS Whale Purchase Sparks Contemporary Warnings of Market Manipulation

In response to monitoring by Onchain Lens, James Wynn made a sizeable buy of ZEUS meme tokens on June 16. On-chain knowledge factors out that such whale exercise can enchantment to retail merchants, probably main them to comply with these giant strikes, typically rising volatility within the course of.

Whereas giant whale buys can usually appeal to retail curiosity, this buy has been met with warning. Investigator ZachXBT rapidly warned his followers that the creators behind the ZEUS meme venture beforehand operated a market-making firm named Darkpool.

In response to ZachXBT’s findings, Darkpool’s public supplies actively promoted market manipulation ways, together with chart manipulation and spoofing. The investigator suggested warning, noting {that a} venture with historic ties to such practices stays a priority for traders. Wynn’s high-profile buy has now amplified this scrutiny.

James Wynn’s “Loser Persona” Masks Worthwhile Buying and selling Technique

Along with the direct token buy, extra on-chain knowledge has proven some additional details about Wynn’s buying and selling patterns. Investigators found hyperlinks between his public pockets and one other, much less traceable pockets.

These accounts understand trades towards one another and will reverse in a web hedging transaction. On-chain evaluation reveals how, regardless of the market notion of his loss and volatility, his personal accounts seem to revenue by way of calculated positioning.

This evaluation means that regardless of a public “loser persona” constructed on high-profile liquidations, his personal accounts could also be profiting by way of a extra calculated and complicated positioning. Researchers have described this persona, which has attracted over 370,000 social media followers, as an efficient advertising and marketing tactic. Critics level to his buying and selling historical past and the $44,000 he has reportedly made in referral commissions as proof of a well-planned public relations and buying and selling technique.