WEB3
by BSCN
February 16, 2024
KSI defended himself, claiming innocence and attributing the sell-offs to inexperience in the crypto world.
Popular YouTuber and rapper KSI, born Olajide Olayinka Williams Olatunji, finds himself at the center of a storm as crypto fraud investigator Zach XBT levels serious accusations against him. Zach XBT, renowned for exposing major scams within the crypto space, alleges that KSI executed pump-and-dump schemes involving at least three different cryptocurrencies.
The crypto investigator claimed that KSI leveraged his substantial social media presence, spanning platforms like YouTube and X, to promote specific tokens intentionally.
This alleged promotion triggered notable price surges in the crypto market. The crux of the accusations lies in Zach XBT's presentation of on-chain data, revealing substantial sell-offs from KSI's wallet, resulting in profits exceeding $1 million.
The practice in question, known as a "pump-and-dump" scheme, involves artificially inflating the prices of tokens through promotional efforts, only to swiftly sell off the holdings at the peak, reaping substantial profits. KSI’s story involves XCAD Network (XCAD), Ethernity Chain (ERN), and a discrete NFT project called P***Y.
One illustrative example from March 2022 highlights KSI's tweet to his vast following, expressing that his XCAD holdings were "looking juicy again" and accompanying it with the hashtag "HodlGang."
However, Zach XBT's research reportedly exposed KSI's wallet dumping a staggering $850,000 worth of XCAD within days of the optimistic tweet. Zach XBT's scrutiny did not stop with a single instance.
Further investigation reportedly uncovered a pattern where KSI publicly endorsed projects on his social media accounts, such as the NFT-focused Ethernity Chain (ERN), only to allegedly execute significant sell-offs shortly afterward. This apparent pattern raised eyebrows among crypto enthusiasts.
In a collaborative effort with Coffeezilla, Zach XBT brought forth evidence of three additional instances mirroring this suspicious behavior. KSI's purported endorsements of NFT coins were followed by substantial sell-offs within remarkably short timeframes. For instance, after publicly supporting the EARN project, KSI allegedly sold $174,926 worth of its tokens.
Coffeezilla managed to secure a response from KSI, who vehemently denied any malicious intent. KSI asserted his loyalty to the "HodlGang" and defended his controversial tweet. He explained that he sold some profit to put into Luna, thinking he would profit more by buying back more XCAD.
In response to the mounting scrutiny, KSI admitted to the transactions in question but vehemently denied any malicious intent or profiteering.
Instead, KSI portrayed himself as a newcomer to the intricate world of cryptocurrencies, navigating the complexities with enthusiasm and inexperience.
"I wish I was an evil genius that would pump and dump at the right time, because at least then people would say I had some wit about me. Reality is, I was just sh** at crypto," KSI said.
He revealed losses totaling $2 million in his overall crypto investments, highlighting the challenges he faced in navigating the volatile crypto market.
However, according to Coffeezilla, KSI's claims that the sell-offs were unsuccessful attempts to chase market pumps lack credibility. In a YouTube video reacting to the allegations, Coffeezilla expressed disbelief, stating, "I don’t really buy that he had no clue that tweeting one thing would positively affect the price in his favor."
While KSI's explanation resonates with some members of the community, skeptics point to the precise timing of his promotions and subsequent sell-offs as evidence that his explanations may not fully add up.
The scrutiny extends to KSI's close business ties with Logan Paul, who recently faced legal action over his promotion of an allegedly fraudulent NFT project called CryptoZoo.
Despite the controversy, KSI's reputation has garnered support from some quarters within the community. Oliver Bell, founder of the XCAD Network, disputed the allegations, asserting that KSI remains an active investor and supporter of XCAD.
In his response, Bell asserted that the YouTuber had every right to sell his tokens. Bell said KSI had been one of their "biggest value adders" who had introduced and suggested the product. According to the executive, even though KSI sold some tokens, the YouTuber bought more than he sold.
YouTube commentator Kavos, initially critical of KSI, recently rescinded his comments after gaining more information on the XCAD trades.
In a formal apology to KSI, Kavos acknowledged that initial news and posts about the XCAD crypto scandal had misled him. Upon further research, he concluded that the pump-and-dump accusations against KSI do not hold up to scrutiny.
While withdrawing his previous criticism, he still expressed the opinion that KSI should have exercised more caution when tweeting about coins that his fans might invest in, especially if he engaged in regular trading of those coins.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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