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Explosive Claim: ZachXBT Accuses Kaito of Faking 1M+ User Metrics

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Explosive Claim: ZachXBT Accuses Kaito of Faking 1M+ User Metrics
Explosive Claim: ZachXBT Accuses Kaito of Faking 1M+ User Metrics
AbhijeetBy
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Key Points

  • ZachXBT Accuses Kaito of Faking 1M+ User Metrics
  • Warns startups against associating with Yap-based platforms
  • Labels Kaito a hub for AI-generated spam and engagement farming
  • No hard proof given, but ZachXBT’s influence carries weight

ZachXBT, one of the most well-known investigators in the Web3 space, has once again stirred the crypto waters,  this time by targeting Kaito and its recent claims of massive user growth.

It all began when Billions Network, a project partnered with Kaito, announced it had reached over 1 million users. That’s when ZachXBT stepped in with a blunt response: the numbers are likely fake.

He warned that these inflated user metrics are not just misleading; they pose a real risk to the credibility of any new crypto project associated with platforms like Kaito.

He linked this inflation to Kaito’s reward system, which uses Yap tokens to incentivize content creation. According to ZachXBT, this has led to an explosion of AI-generated spam rather than genuine engagement.

Calling out the project publicly, ZachXBT didn’t accuse Kaito or Billions Network of fraud but said the metrics are “ridiculous” and “unrealistic.” While the criticism was largely based on opinion rather than hard data, it’s already creating ripple effects in the community.

It’s a sharp reminder for Web3 startups to prioritize substance over hype — a lesson also seen in recent developments like Ripple’s $15 billion valuation, where long-term credibility still holds weight in the market.

Yap Farming and the Risk to New Crypto Projects

Kaito launched with a bold mission: reward insightful crypto content using Yap tokens. But according to critics like ZachXBT, the execution has failed to live up to the promise.

Instead of meaningful discussion, Kaito’s incentive system has allegedly created a flood of AI-driven spam posts. Many users figured out how to game the system, prioritizing quantity over quality to earn rewards.

This type of behavior, often referred to as “Yap farming,” is being viewed as the digital equivalent of multi-level marketing schemes, where users generate content solely to earn from airdrops or algorithmic exploits.

ZachXBT warned that small crypto startups, especially those just getting started, could ruin their reputation by partnering with platforms like Kaito.

“These users will turn on a project the second the airdrop doesn’t deliver big returns,” he said. “Then they call everything a scam and move on to the next one.”

Even though he didn’t provide direct evidence, his reputation in the crypto world gives his words serious weight. For a space that values transparency and decentralization, partnering with a platform accused of shady engagement practices is a risky move.

It’s not the first time the crypto space has had to face trust issues — remember the North Korean NFT hack incident that caught Web3 off guard? Reputation damage lingers long after the exploit.

Reputation vs. Hype in the Crypto Ecosystem

This isn’t the first time ZachXBT has taken a strong stance against crypto hype and questionable marketing tactics. But this latest episode touches on a growing problem in the industry: the difference between real community building and vanity metrics.

In a time where follower counts, engagement rates, and “users” are often used to judge the legitimacy of a project, ZachXBT’s post serves as a reality check.

He’s urging the community to look deeper than the numbers. According to him, platforms like Kaito are enabling a cycle that rewards noise over substance. That kind of environment, he argues, is toxic for startups trying to gain real traction and trust.

By labeling Kaito as a “counter signal,” he’s essentially advising builders and investors to steer clear. “They humiliate themselves for money,” he wrote of the Yap farmers. “They’re not here to help projects grow,  they’re here to exploit them.”

In a rapidly growing space like crypto, where new tools and platforms are launched almost daily, these kinds of warnings can make or break partnerships. Whether or not the accusations against Kaito are proven, the damage may already be done.

Startups and investors would be wise to watch not just where the traffic is coming from but what it’s worth.

As the industry matures, data-focused transparency tools like the Creator Coin Index will likely become even more critical in separating hype from reality.

With meme coin volatility rising, as seen with the TROLL meme coin’s 210% surge,  and broader market shifts noted in Bitcoin divergence signals, building with integrity matters more than ever.

The recent Solana meme coin rebellion also reflects how communities are becoming more discerning, favoring real value over inflated metrics.

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Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.
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