Is Ansem Running ‘Pump and Dumps’? Crypto Influencer Under Fire

• ZachXBT accuses Ansem of ‘pump and dump’ schemes. 
• Ansem defends his endorsements of low-cap tokens.
• Many of these memecoins collapsed since. 

Memecoins have recently captured the attention of retail investors, often fuelled by influencer endorsements. However, influencers have recently been under fire for their role in promoting dubious memecoin projects. Whether promoting projects linked to them directly or indirectly, their performance is typically abysmal. 

Most recently, crypto investigator ZachXBT went after crypto influencer Ansem for his role in low-cap promoting memecoins. His recent actions, ZachXBT claimed, amounted to promoting “pump and dump” schemes. 

ZachXBT Slams Ansem for ‘Pump and Dumps’

Influencers are increasingly under fire for their role in the crypto industry. On Saturday, October 5, crypto investigator Zachary “ZachXBT” Wolk accused crypto influencer Zion “Ansem” Thomas of promoting “hundreds” of low-cap memecoins to his followers. The activity amounted to “pump and dump” schemes, claimed ZachXBT. 

A pump-and-dump scheme promotes a token, often one with a low market cap, to a large following. Once the prices surge, those involved dump their tokens on the followers, causing their prices to crash. The schemes, while popular, cause significant financial damage to retail investors. 

ZachXBT highlighted Ansem’s irresponsible promotion of Solana-based memecoins. With over 500,000 followers on X, Ansem has a significant influence on memecoin prices. Many of these memecoins have shown abysmal performance since Ansem promoted them. This includes BODEN , HOBBES , ZEUS, and WYNN, all down more than 98% since their April all-time highs. 

Crypto Influencers Under Fire for Memecoins

Ansem defended these promotions by highlighting one success story. Dogwifhat (WIF) , which Ansem promoted when its market cap was only $100,000, surged to an all-time high of $4.8 billion in March 2024. This example, he claimed, shows that memecoins have the potential for outsized gains. 

He also claimed that memecoins are what traders want, whether or not influencers get behind them. “The ‘low cap garbage’ you talk about has dominated 90% of retail mindshare in crypto over the past year,” Ansem explained. 

Despite some memecoins showing impressive growth, most memecoins on the market create significant losses. With thousands of memecoin launches daily, the vast majority can’t perform well. For instance, in July, one Solana developer highlighted the abysmal performance of celebrity Solana memecoins. The 30 celebrity memecoins launched the month before lost an average of 94% of their value. 

On the Flipside

• Memecoins represent an accessible, if risky, investment opportunity. Because memecoins typically lack utility, traders can invest in them without understanding any underlying tech. 
• Despite the calls for regulations, memecoin promotions have eluded major enforcement actions by US regulators. 

Why This Matters 

Influencers with significant followings have the potential to impact the markets, especially with low-cap currencies. However, investors should know that most of the tokens they promote decrease significantly. 

Read more about the criticism of memecoin endorsements: 
Vitalik Buterin “Unhappy” with Celebrity Memecoin Cycle

Read more about Ethereum’s recent performance: 
Ethereum No Longer ‘Ultrasound Money’? September Inflation Turns Investors Bearish