ZachXBT Exposes 5 Token2049 Sponsors’ Shady Practices

• Crypto sleuth ZachXBT flagging Token2049 sponsors as risky.
• Event rocked by accusations of fraud, manipulation, and poor vetting.

On March 27, 2025, crypto investigator ZachXBT accused Token2049 of legitimizing risky sponsors. His accusations raised concerns about fraud, manipulation, and regulatory violations. The investigation targeted high-profile sponsors, highlighting questionable practices and triggering broader conversations about the credibility of sponsorships within the cryptocurrency industry.

On March 27, 2025, ZachXBT warned that platinum sponsorships at Token2049 do not guarantee legitimacy for crypto projects. He singled out several sponsors embroiled in controversies, citing examples like JPEX—a former Token2049 sponsor—which collapsed in 2023, resulting in massive investor losses.

Gluwa launched Spacecoin (SPACE), a title sponsor, between 2024 and 2025. The project aims to create a decentralized satellite-powered infrastructure for global internet access. However, ZachXBT criticized the project for the project's community as "botted" due to missing audits and unverifiable claims of satellite launches. Critics argue the initiative thrives on speculative trading and aggressive marketing rather than tangible innovation.

JuCoin (JU), a platinum sponsor based in Hong Kong, faced scrutiny due to repeated rebranding and regulatory ambiguity. Established in 2013, the exchange remains unlicensed in major markets like the U.S. and EU and has only applied for a license in Hong Kong. ZachXBT flagged its operations as "sketchy," rooted in heavy marketing campaigns rather than compliance.

Another platinum sponsor, Weex, offers anonymous futures trading since its 2018 launch in Dubai. However, it operates without regulation from top financial authorities. Reports have surfaced of account freezes and sudden Know Your Customer (KYC) demands, along with complaints on social media about its operational ethics.

DWF Labs (DWF), a market maker and Web3 investor, also came under fire for alleged token price manipulation via wash trading. On January 30, 2025, Wintermute accused DWF Labs of orchestrating a massive wash trading scheme involving $1.8 billion in trades, which coincided with a significant drop in a token's price. Despite these accusations, DWF maintains visibility through sponsorships and investment publicity.

Bitunix, an offshore exchange registered in Seychelles, drew criticism for marketing unregistered services to South Korean customers. South Korea’s Financial Intelligence Unit (FIU) has warned against the platform for operating without proper registration. With limited oversight and an opaque corporate structure, Bitunix poses significant risks to investors.

The exposé into Token2049’s sponsors underscores the critical risks tied to speculative crypto projects. ZachXBT’s analysis reveals their survival often hinges on aggressive marketing tactics and community hype over regulatory compliance or genuine innovation. Therefore, investors should prioritize thorough research into a project’s regulatory standing, team transparency, tokenomics, and external audits to avoid financial pitfalls.