TL;DR
- Blockchain investigator ZachXBT accidentally launched a $15 million meme coin on the Base network.
- The Zora protocol automatically converted his NFT into an ERC-20 token without his knowledge.
- ZachXBT expressed frustration over speculation on a project intended for investigative purposes.
Blockchain investigator ZachXBT finds himself in an unexpected situation after an NFT, created to document a $243 million theft case, was converted into a $15 million meme coin.
This situation arose due to the Zora platform, which automatically transformed the NFT into an ERC-20 token, allowing it to be traded on decentralized exchanges like Uniswap.
This conversion happened without the knowledge or intent of ZachXBT, who only wanted his investigation to be permanently archived on the blockchain.
The information was shared by the investigator on social media, where he posted screenshots of Zora’s interface and explained the lack of clarity about the tokenization process.
The accidental creation of the token dates back to August 19, 2024, when ZachXBT used the Zora protocol on the Base network to launch an NFT that documented his investigation as a free resource.
However, due to Zora’s automated settings and its ERC-20z standard, this NFT was converted into a tradable token, generating around 3,500 tokens that quickly reached a multi-million-dollar market value.
Zora had introduced this token standard as a way to offer liquidity to digital collectibles, but its interface did not specify to creators that an ERC-20 token would also be launched at the conclusion of an open-edition NFT mint.
ZachXBT voiced his frustration over the speculation generated around the token and warned that he might take steps to discourage further trading.
Among these measures, he considered issuing additional units of this NFT without an end date and even replacing the artwork on the NFT with a blank image, reducing the token’s appeal as a collectible item.
His original intent was simply to document his investigations permanently, without encouraging a speculative market around these digital files.
Community Reaction and Next Steps of ZachXBT
The response from the crypto community has been mixed, with some users humorously suggesting that ZachXBT’s token could be distributed to millions “for fun.”
However, this situation has sparked a debate about the need for greater transparency in interfaces like Zora’s, where some users remain unaware of the implications of certain automatic tokenization processes.
For ZachXBT, the speculation surrounding his NFT runs counter to the original purpose of his creation, which was to provide an accessible and cost-free resource, similar to his articles on the Mirror platform.
This case highlights a broader issue within the blockchain ecosystem regarding the control that creators have (or lack) over their own projects, especially when using third-party protocols.
Zora’s ERC-20z technology allows NFTs to be transformed into ERC-20 tokens that can be freely traded on the market, which can be useful for some projects, but in other cases leads to undesirable effects, as seen here.
ZachXBT and other creators may likely demand greater clarity and configuration options in the future to prevent situations where the intentions of a project become distorted.
