YEREVAN (CoinChapter.com) — Blockchain investigator Zachary Wolk, identified on-line as ZachXBT, publicly accused crypto influencer Zion “Ansem” Thomas of selling a sequence of low market cap memecoins to his massive following. In an Oct. 5 change on X , Wolk criticized Thomas for what he referred to as a “pump and dump” method. He claims that Thomas was utilizing his affect to artificially inflate coin costs.

ZachXBT Challenges Ansem’s Affect Over Low Cap Memecoins

Wolk’s accusations centered on Thomas’ promotion of Solana-based memecoins, claiming that Thomas exploited his massive following of over 507,000 customers to control costs. Based on Wolk, Thomas’ actions might end in vital losses for his followers. He famous that smaller cash are notably delicate to market actions pushed by distinguished figures.

“If you resort to promoting new low cap memecoins every few days to followers as a large account, it’s [because] you have no edge and have to use your followers instead,”

Wolk argued. He referenced a number of tokens Thomas had allegedly promoted, together with BODEN, HOBBES, and WYNN, all of which have seen their values plummet.

In response, Thomas questioned why selling “lowcaps” was labeled as “grifting” and defended his assist for these cash.

He highlighted Dogwifhat (WIF) for example, which had a market cap of $100,000 on the time of his promotion and later surged to $4.8 billion in March. Thomas in contrast his promotion of WIF to different tokens, together with Chainlink (LINK), which is down 90% towards Bitcoin year-to-date.

“The ‘low cap garbage’ you talk about has dominated 90% of retail mindshare in crypto over the past year,”

Thomas stated, declaring that memecoins had been extremely in style amongst merchants. Nevertheless, critics argue that such promotions can result in heavy losses for retail buyers who could not totally perceive the dangers concerned with these risky belongings.

BODEN and Different Memecoins Expertise Huge Declines

Lots of the cash ZachXBT talked about have seen sharp declines in worth. For instance, BODEN, a memecoin themed round President Joe Biden, is down virtually 99% from its all-time excessive of $1.04 billion in April, in keeping with CoinGecko. Equally, HOBBES, ZEUS, and WYNN have all dropped by roughly 98% from their peaks, confirming the dangers related to such low-cap cash.

This public change has introduced additional consideration to the continued debate surrounding memecoins. Advocates argue that tokens like Dogecoin (DOGE), Pepe (PEPE), and WIF have delivered outsized returns in comparison with extra conventional utility tokens. Critics, nevertheless, declare that these cash are primarily designed to learn early buyers on the expense of retail contributors.

Above all, the function of memecoins within the crypto market stays a contentious concern. Whereas some buyers see them as high-risk, high-reward alternatives, others argue that they’re structurally nugatory and primarily serve to extract worth from uninformed buyers.