A popular cryptocurrency project called Serum has come under scrutiny from cryptocurrency sleuth ZachXBT, who has accused the project of shilling “shitcoins”. ZachXBT took to Twitter to expose the project, which has over 215,000 followers, for deleting all its tweets and changing its profile picture to that of a Milday. The account’s username has also been changed to Luka, and it now has 207,000 followers. ZachXBT identified that the account has started to shill “shitcoins”, which are cryptocurrencies that have little to no value and are often associated with scams.
Interestingly, ZachXBT was blocked by the account, indicating that the project is aware of its scammy activities. Another Twitter user, “DB”, also pointed out that the project has opened a new Twitter account, which has made a prediction for its token, stating that it will hit $1,000. This is a highly unrealistic prediction, as the project’s token, SRM, is currently trading at $0.1873, with a 3.3% drop in value over the last 24 hours. The coin is 98% down from its all-time high.
The Serum project has been associated with FTX, a cryptocurrency exchange. Serum is a decentralized exchange protocol based on the Solana blockchain. It has received support from FTX since its inception, and SRM tokens were given to traders on a weekly basis through an airdrop system on the now-defunct exchange. On Nov. 14, the Solana Foundation announced that it held 134.54 million SRM on FTX, which raised questions about the future of the project.
The accusations made by ZachXBT are serious, as shilling “shitcoins” is a common tactic used by scammers to lure unsuspecting investors into buying worthless cryptocurrencies. It is important for investors to do their own research and not rely solely on social media influencers or projects with large followings. The cryptocurrency market is highly volatile and risky, and investors should exercise caution when investing in any project.
It remains to be seen how the Serum project will respond to these accusations, but it is clear that the cryptocurrency community is watching closely. As always, investors should be vigilant and do their due diligence before investing in any project.