ZachXBT, the Twitter on-chain sleuth, had accused crypto influencer Lark Davis of promoting ‘low cap projects’ to his following and then dumping them shortly after.
However, Davis has refused these allegations and said that he had not gotten anything from the projects for free and the quantity that he had sold was not enough for ‘dumping the price’.
On September 29th, Zach posted a Twitter thread with the allegations and Davis responded to it. As per the allegations, the influencer had made profits of more than $1.2 million.
He had accomplished this by selling tokens associated with crypto projects that he had allegedly been asked to promote without disclosing that he was paid for it.
The thread comprised 17 parts and in which eight examples were highlighted by Zach of what is a crypto wallet of Davis.
Tokens associated with new crypto projects were transferred to the wallet in question and Davis was then seen posting a video or tweeting about the tokens.
Shortly after, he would sell the tokens. According to Zach, he had been contacted by numerous people who had lost their money on the tokens that Davis had prompted.
These people had asked him to take a closer look at the crypto influencer.
Zach alleged that Davis had dumped the tokens associated with low cap projects a number of times. He added that they had looked into several crypto influencers.
But, none of them had ever made profits of this magnitude as Davis had done. As per Zach’s allegations, the largest gain that Davis had made was through the 120,000 tokens of SHOPX that he had received.
Hours after he had received the tokens, Davis had begun tweeting about the project and he simultaneously sold the tokens. This resulted in him making gains of around $435,000.
Zach presented seven other examples, along with this one, to show exactly how Davis had managed to make profits of about $1.2 million in the same manner.
Zach stated that it was perfectly acceptable for crypto influencers to share projects they genuinely like, or participate in seed rounds, as long as they ensure transparency.
But, he stated that this is certainly not something that Davis had done because he has a pattern of dumping the projects he promotes across his newsletter, Twitter and YouTube channel.
On the same day the allegations were made, Davis tweeted that they were ‘ridiculous’ and responded to each of the examples that Zach had posted.
The crypto influencer informed his one million followers that had had not gotten anything for free and he also said that he always disclosed his token sales on his YouTube channel which has 485,000 subscribers.
He also asserted that he shared the same with his followers. He went on to say that he was just following an investment strategy, one he also teaches others.
This involves selling tokens at launch time, which he said is quite common when it comes to token sales.