A crypto influencer and YouTuber Lark Davis has been alleged of exploiting his audience. He promotes low-cap projects to his audience and dumps them shortly after.
ZachXBT, a self-proclaimed on-chain sleuth, conducted an investigation. He alleged Lark Davis, a crypto influencer on his Twitter thread while supporting his arguments. He said David made over $1 million for promoting some low-cap crypto projects, and later dumping them on his followers.
Davis response is he never gets paid for these promotions. But the truth is these projects offer him truckloads of money to promote their projects.
Continuing to his thread, ZachXBT highlighted eight instances of Lark promoting low-cap projects before he dumped them to his audience. The first instance takes us back to Feb 2021, when he promoted $UMB token. ZachXBT highlights that an address connected to David received 62,500 UMB tokens. And David later dumped all the tokens immediately after his promotion, where he made a profit of close to $136,000.
This format was repeated by David Lark for the $DOWS token on March 1. After dumping the tokens to his audience, he earned close to $56,000.
ZachXBT alleged David for dumping other tokens including $SHOPX, $PMON, $BMI, $XED, and $APY. He promoted these tokens right after their launch. Later, he sold the tokens he received for the promotion.
For the promotion of $BMI, David tweeted that he doubled his positions in the token. But ZachXBT revealed the crypto influencer’s wallet did not show what he said he had done. Adding to that, David claimed he is not paid for his promotions of the projects, despite being offered truckloads of money from such projects.
ZachXBT pointed out that the projects David has been promoting have poor tokenomics, which means the token has no real value. This is why no good VC ever invests in them. And that is why they want to pump these tokens into the market before anyone realizes it.
David hasn’t responded to ZachXBT as of now. But if the allegations are true, he better has an explanation for all that!
The crypto sleuth highlighted that participating in seed rounds or talking about projects they like transparently is no crime. And this is not the first time any influencer has been dumping low-cap cryptos to his audience for their benefit. ZachXBT had investigated and accused several influencers in the past who dumped cryptos on his followers. Earlier, he accused Logan Paul of promoting several pumps and dump schemes.