ZachXBT Calls BlockDAG a “Fake Project,” Warns Users Away

ZachXBT called BlockDAG a scam, claiming it made up its recent announcement of a $375 million presale. He issued this warning in response to the community’s strong interest in the project.

He offered no concrete proof, instead posting several pieces of circumstantial evidence. For now, it might be best to wait for more information.

Could BlockDAG be A Scam?

For the last few months, BlockDAG, L-1 blockchain for scalability solutions and crypto mining, has been a popular choice for a lot of investors. Its technical promises, sponsorship deals, and more have attracted a lot of clout. Yesterday, the firm announced that its token presale crossed $375 million, showing high community interest.

However, crypto sleuth ZachXBT issued a warning about BlockDAG, calling it a scam:

This is a pretty serious accusation, especially considering his stature in the community. ZachXBT claimed that BlockDAG is a scam token project for a few reasons, alleging that the $375 million milestone is completely made up. Analysts have predicted that its ICO and mainnet launch would happen in Q1 this year, but we’re in Q3 with no notable progress.

Unusual Progress Announcements

Unfortunately, most of his evidence is similarly circumstantial. LBank, a popular CEX, announced it would list the token a few weeks ago. ZachXBT reported a high level of social media excitement about BlockDAG, prompting him to come forward with scam accusations.

He even published BlockDAG’s own offer to pay him for representing it. He insinuated that the LBank listing announcement may have involved a similar deal.

To be clear, though, this is all totally circumstantial. LBank has a consistent strategy of betting on social media hype, believing that community engagement is a powerful market indicator. On that front, BlockDAG is legitimately popular, so the firm has plenty of reasons to give it a shot.

Nonetheless, there are a few other inconsistencies that support this BlockDAG scam theory. For example, LBank’s own BDAG ICO announcement has several strange features: it claims that the event is already over, leaves several key numbers blank, and reports that the ICO raised $600 million. That is substantially higher than the reported presale success.

In other words, this is all very ambiguous. Still, ZachXBT has an immense reputation in the community, and his recommendations carry a lot of weight. If he’s calling BlockDAG a scam, it may be prudent to wait for more info before committing more support.

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