ZackXBT, the on-chain investigator, has yet again found something of interest. Now, he has made some serious accusations against crypto industry behemoth Lark Davis. However, Lark Davis insists that his actions were not illegal or inappropriate.
The anonymous investigator had also accused American YouTuber Logan Paul of supporting numerous “pump and dump” schemes. It was alleged that the influencer used NFT initiatives to take advantage of his audience.
According to ZachXBT, Davis pushed low-cap projects eight times before dumping them without warning the community. He allegedly made about $1 million through this.
The first incident took place in February 2021; 62,500 UMB tokens were sent to an address associated with Davis right after its promotion. ZachXBT’s analysis claims that Davis made about $56,000 by selling the assets he promoted just hours ago. The same trend also followed in DOWS tokens. Ever since Davis has allegedly promoted and sold off a portion of the tokens he was given to promote SHOPX, BMI, PMON, XED, and APY following their launches.
ZachXBT says that all the cryptocurrency projects that Davis backed had “awful” tokenomics, which is why most of them hit the ground before the bear market even hit.
As far as everything is done transparently, it is okay for crypto influencers to partake in seed rounds and promote enterprises they sincerely appreciate. But in Davis’s case, he abandoned his “discounted launchpad bags right after shills across YT, Twitter, and newsletter.”
Davis rebutted by stating that he sold tokens at the time of their release and that behavior is typical of an “investing practice for token sales.” The crypto influencer slammed ZachXBT’s claims as “ridiculous” and nonsensical. He explained how he made money in every scenario ZachXBT highlighted, asserting that he uses the investing method he preaches.