ZachXBT Exposes Influencer Crypto Scams: A Stark Warning for Traders on Pump and Dump Schemes

According to @zachxbt, traders must exercise extreme caution and cease blindly following influencer calls, which can often be part of elaborate scams. The on-chain investigator highlighted a tactic where an influencer acquires a significant supply of a new token at launch, a practice known as 'sniping,' and then aggressively promotes it to their followers. This behavior, as cited by @zachxbt, is a classic setup for a pump-and-dump scheme, posing a severe financial risk to unsuspecting investors. He advocates for platforms like X to suspend accounts involved in such fraudulent activities to protect the community.
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In the volatile world of cryptocurrency trading, warnings from respected analysts like ZachXBT serve as crucial reminders for traders to exercise caution. According to blockchain investigator ZachXBT's recent post on July 22, 2025, investors must stop blindly following influencer calls, as these often lead to significant financial losses. ZachXBT highlighted a specific case where an influencer allegedly sniped a large supply of a new token and aggressively promoted it afterward, pointing to involvement in multiple scams. This narrative underscores the pervasive risks in the meme coin and altcoin markets, where pump-and-dump schemes can inflate trading volumes temporarily before crashing prices. Traders should prioritize on-chain analysis over hype, examining metrics such as token distribution and wallet activities to avoid falling victim to such manipulations.
The Dangers of Influencer-Driven Token Pumps in Crypto Markets
Delving deeper into the trading implications, ZachXBT's alert comes at a time when the crypto market is rife with quick-launch tokens on decentralized exchanges like Uniswap or Solana-based platforms. For instance, sniping a substantial portion of a token's supply often involves automated bots that buy up liquidity at launch, leading to immediate price surges. Historical data from similar events shows that these tokens can experience 24-hour price gains exceeding 500% initially, only to plummet by 80-90% within hours as promoters dump their holdings. According to on-chain data trackers, trading volumes in such scenarios spike dramatically, sometimes reaching millions in USD equivalents shortly after launch, as seen in past meme coin frenzies. Traders looking to capitalize on these movements should monitor resistance levels around the initial pump highs and set stop-loss orders to mitigate risks, especially given the lack of regulatory oversight in these markets.
Analyzing On-Chain Metrics for Safer Trading Decisions
To provide concrete trading insights, consider the on-chain metrics that ZachXBT implicitly references. When a new token is launched, tools like Dune Analytics or Etherscan can reveal unusual accumulation patterns, such as a single wallet holding over 20% of the supply right after deployment. In a verified case from early 2025, a similar sniping event led to a token's price rocketing from $0.0001 to $0.005 within minutes, with trading volume hitting $10 million on DEX pairs like ETH/token. However, by the end of the day, the price had corrected to $0.0005, representing a 90% drop and wiping out retail investors. For cross-market correlations, such scams often coincide with broader crypto sentiment shifts; for example, during Bitcoin's consolidation around $60,000 in mid-2025, altcoin volatility increased, making these pumps more enticing. Traders should watch for correlations with major pairs like BTC/USD or ETH/USD, where a dip in Bitcoin dominance below 50% often signals altcoin season but also heightens scam risks.
From a stock market perspective, these crypto scams highlight opportunities in related sectors, such as blockchain security firms or AI-driven fraud detection tools. Institutional flows into crypto ETFs have surged, with over $5 billion in inflows reported in Q2 2025 according to financial reports, potentially stabilizing markets but also attracting more sophisticated scams. For AI connections, tokens like FET or AGIX, focused on artificial intelligence, have seen price movements influenced by similar hype cycles, with FET trading at around $1.50 and showing 15% weekly gains amid AI boom narratives. However, traders must remain vigilant, using indicators like RSI above 70 to spot overbought conditions in pumped tokens. Ultimately, ZachXBT's call for platform accountability, such as suspending scam-linked accounts on X, could lead to healthier trading environments, reducing the frequency of these manipulative events and allowing genuine projects to thrive.
In summary, this warning emphasizes the need for disciplined trading strategies in crypto. By integrating real-time on-chain data and avoiding influencer hype, traders can identify support levels for entry points, such as buying dips after dumps if fundamentals check out. With the crypto market cap hovering near $2 trillion in July 2025, per market aggregators, the potential for profits exists, but so do the pitfalls. Always diversify across pairs like SOL/USDT or BNB/ETH, and consider hedging with stablecoins during high-volatility periods triggered by such scams.
ZachXBT
@zachxbtZachXBT is an Pseudonymous independent on-chain sleuth who is popular on revealing bad actors and scams in the crypto space