The renowned crypto detective, ZachXBT, has recently shed light on another dishonest chapter in the crypto trading sector among industry influencers, this time involving the PAAL AI project. With a solid reputation for uncovering scams and ensuring a safer crypto environment, ZachXBT’s latest revelation is making waves in the digital currency community.
The exposé delves deep into the allegedly deceptive maneuvers employed by four traders– Trader NJ, PetaByte, Trader SZ, and Trader XO. Using the influence of prominent figures to extract free tokens from budding projects like CBOT and BabyShib, these traders would then sell them to their unsuspecting followers at a considerable profit. This two-phase investigation relies on concrete evidence, including Telegram messages and transaction histories, to strongly support the allegations.
The scheme of Trader NJ and PetaByte
In the first phase of this revelation, particular attention has been focused on Trader NJ and PetaByte. Their strategy involved negotiating marketing initiatives with projects, a tactic that granted them a substantial share of token supplies. Despite their early assurances of long-term investment, the duo quickly capitalized on their holdings, earning over $115,000 in just a few days, betraying the trust of their followers.
The BabyShib project fell victim to this deceit, as Peta reneged on the agreement to involve more influencers before promptly selling the tokens upon receipt, contradicting the initially agreed-upon strategy.
Escalation of deception with Trader SZ and Trader XO
ZachXBT’s investigation expands its scope to encompass the actions of Trader SZ and Trader XO, highlighting their involvement in a similar pump & dump scheme surrounding the PAAL AI token. Despite their initial dissociation from the CBOT controversy, evidence suggests an active role in the promotion and subsequent sale of PAAL tokens. These two reputed influencers of Crypto Twitter (or Crypto X now?) continue to deny the facts, despite clear traces displayed by the blockchain. In fact, the addresses used for the token pump & dump are the ones that received honorary NFTs from different collections…