ZachXBT: Politicians lead the way in crypto crime, hacking is more profitable than serious construction

As on-chain data gradually becomes more transparent, the crypto industry has fallen into the darkest moral low point. On-chain detective ZachXBT recently posted that the crypto field has entered a "criminal supercycle", with politicians leading token issuance, courts dismissing multiple controversial lawsuits, and protocol developers turning a blind eye to hackers' money laundering. He is worried that the corruption of blockchain may lead to the unsustainability of many on-chain ecosystems.

Criminal Dominance: Protocols Turning a Blind Eye to Illegally Stolen Funds

ZachXBT criticized that the rules of today's crypto world have been turned upside down, with crime entering a supercycle more rampant than ever before. He pointed out: "Some protocols have witnessed over 50% of on-chain activities coming from stolen funds, but the team chooses to collect transaction fees and do nothing."

(Is Hyperliquid at Risk of Becoming a Money Laundering Tool? Security Team: James Wynn is of the Same Ilk)

Taking the North Korean hacker group Lazarus Group as an example, Zach revealed that they successfully used small OTC traders and some mixing or privacy protocols to launder funds from multiple hacking incidents, including Bybit, DMM Bitcoin, and WazirX, and the matter was left unresolved:

I estimate that the scale of illegal funds circulating on the TRON chain is at least between $5 billion and $10 billion, and most are difficult to trace.

After all, compared to reporting to regulators or freezing black money, development teams are more concerned with maintaining data performance and income sources, and morality is selectively ignored in the face of interests.

Fraud Normalization: Regulators Allowing KOLs to Lead Scams

Not just hackers, Zach also pointed out the complicity of communities and KOLs. He stated that over the years, numerous influencers and key opinion leaders (KOLs) have not disclosed their compensation for promotions, which is actually illegal in most jurisdictions:

Government agencies could fine all KOLs or projects that have never disclosed paid advertisements, earning $50 million to $100 million. If they spent time on regulation instead of chasing open-source developers or decentralized protocols, things might be better.

He candidly admitted, "This is so prevalent only because there has never been a truly serious consequence."

(Chinese Social Platforms Undergo Largest Crypto KOL Purge Since 519! Many KOLs and Group Chats Banned)

The logic behind this behavior is brutal and realistic - without legal consequences, it's almost impossible to stop in the short term.

Is Blockchain Illuminating or Amplifying Darkness?

Facing various scandals in the crypto industry, some users questioned whether blockchain only makes crime more rampant without providing clarity. Zach responded:

Both are true. On-chain is indeed very transparent, but there's so much money in this field that some unprepared people suddenly become wealthy, becoming complacent, careless, and risk-ignorant, providing hackers with many free opportunities to make money.

On the other hand, as MyEtherWallet founder Tayvano said, perhaps the reward mechanism in the crypto field itself has already deviated from the right path, with law-abiding people facing legal sanctions while rug pull perpetrators go unpunished:

I don't think things will change unless value creators and serious developers can be rewarded more than those who extract and meaninglessly transfer value.

Therefore, she believes the crypto field will attract more antisocial, selfish, and corrupt individuals, while honest, collaborative, and self-sacrificing builders are marginalized and suppressed, suggesting this is no longer a place suitable for creating the future.

(Written After ABCDE Capital's Exit: Is There a Future Worth Building in Crypto When VCs Are Clocking Out?)

The Price of Short-Term Profits: The Collapse of Long-Term Trust and Infrastructure

Finally, Zach also pointed out a contradictory phenomenon: "Now is actually the most profitable time to do bad things", but this sadly symbolizes that the industry is at its most dangerous turning point.

Looking back at the uninspiring narrative of the past half year, the token launch platform Pump.fun has created an astonishing revenue of $700 million, with a pure value extraction gambling platform becoming prominent:

Like it or not, gambling remains the primary use case for this industry.

Zach frankly admits that people are more enthusiastic about replicating arbitrage models rather than solving problems. This not only makes fraud more prevalent but also causes the entire crypto world to lose its original core values of "decentralization, trust, and innovation".

Recently, the ecosystem token AB Blockchain, which was just listed on Binance Alpha and achieved over 100 million in trading volume for two consecutive days, has attracted high attention and suspicion in the community due to its high FDV, highly controlled token distribution, and impressive presidential-level behind-the-scenes team. There are concerns about whether it is about to face a high-valuation bubble crisis or price collapse, potentially becoming the next ZKJ.

(Polyhedra emphasizes technical stability: ZKJ's sharp drop is due to abnormal exchange transactions)

Token Distribution Imbalance? High Control at 97% Adds Risk

Besides the team identity issues, the token distribution situation has sparked more market panic. Gmgn data shows that $AB's phishing wallet proportion reaches 99.6%, with the largest holder's position accounting for 97.3%, almost entirely in a controlled state. This extreme concentration may not only lead to insufficient market liquidity but also bury hidden dangers of price manipulation and market dumping.

In the DeFi ecosystem, such highly concentrated token distribution is often associated with potential "pump and dump" strategies. The community believes that if you are a liquidity provider (LP) or an investor holding a large amount of $AB, you should be highly alert to potential price risks and technical collapses.

15 Billion FDV, What Justifies It? Valuation Bubble and Application Gap

Currently, AB's fully diluted valuation (FDV) is as high as 1.5 billion USD, which is compared to projects with extensive applications and market recognition, such as $INJ, $LIDO, $CAKE. Critics question: "Does a chain with unclear utility and popularity qualify to stand at the same valuation level as these mature DeFi projects?"

Although AB's narrative focuses on RWA on-chain and cross-chain technology, there is currently no evidence of large-scale deployment or ecosystem applications. Looking at it now, such a high valuation might just be bloated, and it may only become the fuse that crushes market confidence and triggers a severe market collapse.

Listing on Major Exchanges Within Six Months: Is AB a Disruptive Innovation or a Leek Harvesting Machine?

In the crypto market, narrative and implementation often have a huge gap. While AB's RWA integration vision is attractive, from the perspectives of team transparency, token distribution structure, and valuation basis, the doubts seem to outnumber the selling points.

When the community has started issuing warnings about the "next collapsed coin" and the project side remains unresponsive, the true value of $AB may only be seen clearly by those who carry the sedan chair to the end.