ZachXBT's NFT unintentionally turned into a meme coin

This summer, during an investigation, the on-chain detective ZachXBT created a free non-fungible token (NFT) called 243M Theft. Crypto enthusiasts discovered it, significantly boosting the coin's market capitalization to $15 million.

Using the Zora protocol, the NFT made by ZachXBT was automatically converted into a tradable ERC-20 token. The on-chain detective claims this conversion was entirely incidental.

**The ZachXBT Scandal**

In August, ZachXBT looked into a case involving the theft of $243 million from the lender Genesis. To archive his investigative content on the blockchain, he generated a free NFT through the Zora protocol on Base. Unexpectedly, Zora transformed 243M Theft into a meme coin that could be traded on decentralized exchanges (DEX).

"There was no indication in Zora’s user interface that the free NFT would later be launched as an ERC-20 token following minting," ZachXBT shared on X (formerly known as Twitter).

The on-chain detective attached screenshots to his tweet, which clearly displayed the lack of notifications from Zora regarding this conversion.

Also read: How a Regular OTC Trader Aided Lazarus in Laundering Millions in Crypto — An Investigation by ZachXBT

Recently, the Zora protocol introduced a new standard called ERC-20z. This standard allows for converting NFTs into ERC-20 tokens and vice versa, providing them with instant liquidity. It appears that the conversion feature is enabled by default for all new releases.

The initial token supply from ZachXBT consisted of around 3,500 coins, along with additional assets to support the liquidity pool.

"So wait, you accidentally launched a meme coin, technically?" noted well-known crypto analyst Ansem.

**Excitement and Skepticism**

Initially, the market capitalization of 243M Theft was below $10,000. However, once the crypto community became aware of its connection to ZachXBT, its market value soared to $15 million.

According to DEX Screener, at the time of writing, the market cap of 243M Theft had stabilized at $2.5 million, with the asset's price currently at $732.

Price chart for the 243M Theft token. Source: DEX Screener

The entire situation distressed the on-chain detective.

"If people keep tagging me in their posts, I'll flood the market with new free NFTs that have no expiration date or take other actions (like replacing the Zora logo with a blank image)," ZachXBT stated.

The crypto expert emphasized that he does not want users speculating on his investigations.

Also read: ZachXBT Exposes 11 Crypto Wallets of Meme Coin Trader Murad

"This was orchestrated by Zora insiders. They know you have a stellar reputation, and people trust you more. They hijacked your NFT for marketing," quipped one user in response to the on-chain detective's tweet.

Despite this, some remained skeptical about ZachXBT's claim of being unaware of the NFT's conversion into a meme coin.

"It's unclear if Zach was aware of the standard and intended to use it since it requires deactivation, and the Zora team probably didn't announce the update properly. Regardless, Zach ended up launching a token with an automatically deployed liquidity pool — this setup closely resembles pump.fun and pre-sales," remarked a user under the alias notzachxbt.

As of now, the developers of the Zora protocol have not commented on the situation.