ZachXBT criticizes Irene Zhao’s new memecoin amid past failures
The crypto community remains divided as Zhao attempted to clarify her past actions and emphasize her commitment to transparency and accountability in future endeavors.
Pseudonymous onchain investigator ZachXBT has questioned Irene Zhao, the founder of the SO-COL platform and a crypto X influencer, about the steps she plans to take to make amends to those affected by failed projects she was involved in.
This comes in response to a detailed statement by Zhao addressing multiple allegations regarding her involvement in several cryptocurrency projects. In the statement, Zhao discussed IreneDAO, a project that, according to her, started as a fun experiment in January 2022 with minimal expectations.
Web3 project failures
The project unexpectedly gained traction, with millions in trading volume within a week of launching. Zhao ensured transparency, as the treasury was managed by a multisignature wallet, preventing personal control or profit.
Zhao shifted her focus to SO-COL — her Web3 platform aimed at rivaling TikTok and OnlyFans — while leaving the management of the decentralized autonomous organization (DAO) to the executive committee. SO-COL sought to bring millions of Web2 users into Web3 through creator non-fungible tokens (NFTs).
The project initially drew 30,000 users and prominent venture capital backing, but the crypto winter’s impact on NFT transactions led to waning interest from Web2 creators and brands.
SO-COL faced significant selling pressure in February 2023 due to airdrops and token unlocks, which impacted its performance. To address this, Zhao secured a $1.5 million investment from DWF to boost liquidity and extend the project’s lifespan.
Zhao regretted not being transparent about financial struggles and consulting investors sooner, as the project’s token price declined due to market and internal challenges.
New memecoin amid SO-COL's failure
Aside from the Web3 world, Zhao clarified her role in Konomi, her first crypto project, where she was chief marketing officer. She confirmed her involvement was limited to promotion, with no impact on development, strategy or execution.
Related: Celebrity crypto tokens will 'absolutely' catch SEC's eye
However, Zhao took the opportunity to highlight her new project, “ASIANMOM,” which includes strict lock-up periods for herself and contributors to ensure accountability and trust. She invited those disillusioned by SO-COL’s failure to either join the new project or abstain based on their experiences.
Despite Zhao’s explanation, ZachXBT remained skeptical. He questioned Zhao’s commitment to rectifying the losses incurred by participants in her previous projects beyond offering apologies.
ZachXBT criticized her decision to launch a new memecoin instead of continuing to work on SO-COL, questioning the number of failed projects and substantial losses extracted from the crypto space before Zhao would take full responsibility.
Meanwhile, new investors in Solana-based memecoins have been caught off guard by the dismal performance of recently launched celebrity tokens, which have plummeted in value by as much as 99%. Furthermore, a batch of over 30 celebrity-endorsed tokens introduced on Solana in June has seen their prices nosedive by at least 73.23%.
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