Crypto detective ZachXBT has responded to the speculations of his NFT on Zora Protocol and has said that he never intended for people to speculate on investigations.
ZachXBT has clarified that Zora’s user interface currently does not inform creators that an ERC-20 token will be launched at the end of the open edition NFT minting, as he attached a screenshot as a proof of his claim.
The Zora UI currently does not give any indication to creators an ERC 20 token will also be launched at the conclusion of an open edition NFT mint (attaching screenshots for proof).
If people continue tagging me on posts I am going to dilute the piece with more mints that do… pic.twitter.com/RwLJVrv3RT
— ZachXBT (@zachxbt) November 5, 2024
ZachXBT warnerd users, “If people continue to tag me in posts, I will further dilute this discussion with more minted works without an end date and may take other actions (such as replacing art on Zora with blank images)”. This action would reduce the rarity and perceived value of the NFTs.
ZachXBT added that he never wanted for people to speculate on the investigation, but only “wanted a free digital collectible that can be permanently archived on the blockchain”.
The controversy began when a twitter user under the name, notzachxbt, wrote that renowned on-chain detective ZachXBT deployed an ERC-20z token on the Base network on August 19, 2024. The token was deployed using the Zora protocol, which included an automatic liquidity pool (LP) setup, alleged notzachxbt.
On the 19th of August 2024, @ZachXBT deployed an ERC-20z token on the Base network, bootstrapped with an LP using the Zora protocol. This transaction can be found below.https://t.co/as7b6BQrdj
A few months ago, Zora released their ERC-20z standard as a way of providing liquid… pic.twitter.com/IIUEtv1835
— notzachxbt (@243MTheft) November 5, 2024
Notzachxbt further claimed that this new ERC-20z standard by Zora helps create liquid markets for open-edition NFTs by deploying an LP automatically after minting ends, making NFTs immediately tradable on decentralized exchanges (DEX) without extra contracts.
The twitter user claimed, Zach minted his investigation piece using this standard, possibly without knowing it, as it needs to be manually turned off and may not have been clearly communicated by Zora. This led to the creation of an LP-backed token similar to pre-sale tokens. About 2,800 tokens were minted, with extra tokens created for the LP, and all fees were directed to Zach.
“Some of Zach’s fans have formed a community around this token, creating memes, a telegram, this twitter, and even bridging the token to Solana so it can be traded there,” concluded notzachxbt.
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