ZachXBT discovered a crypto influencer who dumped 31 ETH worth of HODL coins on followers.
Crypto adoption is surging rapidly in almost every tech & financial sector because of the potential ability of blockchain technology to perform more perfectly than traditional financial technology. Usually, retail investors jump into this sector to make money in a small time & they choose meme coins and new coins to invest their money but bad actors take advantage of such mistakes of the innocent crypto Investors to play their scam game.
On 11 May 2023, Popular Crypto detective ZachXBT reported that a crypto influencer (@DannyCryp) dumped $57,000 worth of HODL coin on followers, which was illegal activity against what he promised during the promotion of the coin.
ZachXBT noted that @DannyCryp received 2% of the total supply of the HODL token for promoting the coin via the telegram channel & Twitter.
During the Telegram advertisement campaign, crypto influencer claimed that HODL is a better coin & also it will hold a better level of price stability because of a better project team.
On-chain data showed that, the HODL coin influencer sold all of the funds that he received for promoting the token, within 15 minutes of receiving the tokens.
After selling all the holdings, the crypto influencer tried to convince people to remain positive under coin trade price dump situations through a tweet, where he claimed that he was holding the token tightly.
Later, a Crypto influencer responded against this investigation & tried to claim that he was also a victim of the HODL coin downfall and also untagged himself from the investigation report Tweet thread.
Here such incidents are a lesson for the newbie crypto investors that don’t get into full trust in any new token blindly because there is no scheme in the world, which can make everyone rich simultaneously.