Jupiter Exchange faces criticism for meme coin's collaboration with alleged scammer

Jupiter decentralized exchange based on Solana x.com/weremeow/status/1815420328249880880″ rel=”noopener nofollow noreferrer”>Announced A new framework for a fair meme coin was launched yesterday and received backlash from the crypto community by announcing a partnership with Irene Zhao to launch the ASIANMOTHER token. On-chain detective ZachXBT x.com/zachxbt/status/1815425685714047039″ rel=”noopener nofollow noreferrer”>accuses Zhao is acting against the benefit of investors in his previous projects, such as So-Col.

“It’s hilarious to see Irene Zhao involved in a ‘fix’ for opaque allocations when she literally did exactly that with her SOCOL project by deceiving all early investors by making a secret deal with DWF where the terms were not disclosed to them and the community had no knowledge about it,” ZachXBT said in response to the post by the Jupiter co-founder, identified as Meow.

The So-Col mentioned by ZachXBT is the Social Collectibles project founded by Zhao in 2022, which received up to $6.75 million in funding in one year. All rounds consisted of investors purchasing the SIMP token.

In its $1.5 million funding round led by market maker DWF Labs in February 2023, Zhao allegedly acted behind the scenes and omitted details of the agreement. The agreement had a one-year extension, only allowing the market maker to sell its tokens in February 2024.

However, as reported According to CoinDesk, on-chain data revealed that DWF Labs had moved nearly 80% of its holdings to the KuCoin exchange prior to the launch of the SIMP token, when it doubled in price. Voices such as ZachXBT accused Zhao and DWF of acting to profit from retail buyers, while the So-Col team claimed that DWF Labs was helping to create a market for the token.

Additionally, other x users commented on Meow’s post mentioning other alleged scams promoted by Zhao, such as IreneDAO. The project sold non-fungible tokens (nfts) with the promise of reshaping the current state of the creator economy, but has lost over 85% of its value since January 2022.