KSI Faces Pump-and-Dump Allegations: What You Need to Know 👀💰

YouTuber Coffeezilla accuses KSI of engaging in a pump and dump scheme, regardless of its success.

YouTuber KSI accused of pump-and-dump scheme by ZachXBT and Coffeezilla.

📷 [Image] Screenshot of KSI’s crypto wallet selling XCAD tokens. Source: ZachXBT

YouTube star and crypto enthusiast, KSI, has found himself caught up in a pump-and-dump scandal. Crypto investigators ZachXBT and Coffeezilla have accused him of manipulating token prices and profiting from unsuspecting investors. Let’s dive into the details and unravel this crypto drama! 🍿

KSI Revives His Crypto Account 🚀

On February 14th, KSI resurrected his old cryptocurrency-focused account on X, where he used to discuss token investments. As he tested the waters with his 371,000 followers, little did he know that trouble was brewing.

The Accusations Begin 🕵️‍♂️

Crypto investigator ZachXBT wasted no time in calling out KSI on his post. He boldly stated that KSI would start “sharing garbage again.” But it doesn’t stop there. ZachXBT backed up his claim with a screenshot revealing KSI’s investment in the watch-to-earn project XCAD Network (XCAD), followed by a screenshot of KSI dumping a whopping $850,000 worth of XCAD tokens from his crypto wallet. Talk about a shady move! 😱

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Pump-and-Dump Evidence Unveiled 🕵️‍♀️

ZachXBT didn’t stop at exposing one instance of KSI’s questionable actions. He presented other examples of KSI promoting tokens and then promptly selling them. In 2021, KSI publicly professed his bullish sentiment towards the nonfungible token (NFT)-focused project Ethernity Chain (ERN). However, blockchain data revealed that he sold around $350,000 worth of ERN tokens shortly after his endorsement. 📉

Coffeezilla Gets Involved ☕️

Fellow YouTuber Stephen “Coffeezilla” Findeisen decided to add his thoughts to the mix. In a compelling video, he dissected KSI’s statements on the issue. According to KSI, he still believes in XCAD and its potential for content-driven earnings. While he admitted to selling XCAD tokens, he claimed it was to invest in Terra Luna Classic (LUNC), which has since collapsed. KSI tried to explain away his tweets and subsequent selling by stating that whenever he tweeted something, the opposite would happen. As a result, he decided to “tweet the opposite” of his actual actions. 🐦🙃

Was It a Pump-and-Dump? 📉💸

Coffeezilla begged to differ. He insisted that KSI publicly stating one thing and privately doing the opposite is the “definition of a pump and dump.” Whether or not KSI’s actions were successful in manipulating prices, Coffeezilla was not convinced by KSI’s claims of innocence. In his opinion, KSI knew exactly how his tweets would affect token prices, allowing him to profit from unsuspecting investors. 🤔

Controversial Crypto Connections 🤝

Interestingly, KSI is not the only YouTube star facing crypto-related controversies. His close friend and business partner, Logan Paul, has been entangled in his fair share of crypto drama. Logan Paul is currently involved in a class-action lawsuit related to the sales of the CryptoZoo NFT collection, which promised a play-to-earn game that never materialized. Looks like these YouTube celebrities are learning the hard way that the crypto world isn’t all fun and games. 😬

🌟 Additional Insights and Q&A! 🌟

Q: How does a pump-and-dump scheme work? A: In a pump-and-dump scheme, manipulators artificially inflate the price of a token by hyping it up through false statements or endorsements. Once the price reaches a certain level, they cash out their holdings, causing the price to plummet and leaving unsuspecting investors with significant losses.

Q: What are the legal consequences of participating in a pump-and-dump scheme? A: Engaging in a pump-and-dump scheme is illegal in most jurisdictions and can result in severe penalties, including fines and imprisonment. Regulatory bodies, such as the Securities and Exchange Commission (SEC), actively pursue individuals involved in such fraudulent activities.

Q: How can investors protect themselves from falling victim to pump-and-dump schemes? A: To avoid falling prey to pump-and-dump schemes, investors should conduct thorough research before making any investment decisions. Steer clear of tokens with exaggerated claims or promises of quick riches. Stick to reputable platforms and projects with transparent team members and a solid track record.

Looking Ahead: Lessons Learned 💡

The KSI pump-and-dump scandal serves as a reminder that fraudulent activities can take place even in the realms of cryptocurrency. It’s crucial for both influencers and investors to exercise caution and maintain transparency in their dealings. As the crypto industry continues to evolve, regulatory bodies are stepping up to ensure the protection of investors and the integrity of the market.

Let this be a lesson for all: never underestimate the power of due diligence in the wild world of crypto! 🚀💪

References:

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• Voyager Digital investors sue NBA for promoting failed crypto lender
• Coinbase fights SEC in court, SBF’s parents seek lawsuit dismissal, and Bitcoin ETFs: Hodler’s Digest

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