ZachXBT faces backlash after earning $3.8M from meme coin

ZachXBT, a well-known crypto investigator, has come under scrutiny after withdrawing $3.8 million from the newly created ZACHXBT meme coin, which he received after publicly expressing financial struggles.

The controversy erupted when ZachXBT was allocated half of the total supply of the meme coin, leading to accusations of a rug pull from critics who felt his actions were unethical.  

In response to his frustrations about not receiving compensation for significant fund recoveries, an anonymous developer launched the ZACHXBT token and gifted him 500 million tokens.

Following the token's launch, ZachXBT added liquidity to the trading pair and subsequently withdrew approximately 91 million ZACHXBT tokens and around $3.81 million worth of SOL (CRYPTO:SOL) from the liquidity pool.

This withdrawal resulted in a sharp decline in the token's value, prompting community members to accuse him of exploiting the situation for personal gain.

However, supporters have defended ZachXBT, arguing that the meme coin was intended to reward him for his unpaid investigative work in the crypto space.

“ZachXBT is one of the backbones of our industry. He often doesn’t even get paid for his investigations. Timeline says he needs to be rewarded,” one supporter stated.

ZachXBT himself has expressed dissatisfaction with the crypto industry's direction and indicated that the proceeds from this meme coin could help sustain his investigative efforts.

The incident emphasises a growing divide within the crypto community regarding values of altruism versus profit-driven motives.

As new tokens flood the market, established figures like ZachXBT find themselves navigating complex dynamics between community support and financial incentives.

While some view his actions as a necessary step for sustainability in his work, others see it as a troubling trend towards prioritising profit over integrity in an industry that has long championed decentralisation and community-driven initiatives.