BlockDAG, a cryptocurrency project that claims to combine blockchain and Directed Acyclic Graph (DAG) technology, is under fire for its prolonged fundraising phase.
According to famous crypto sleuth ZachXBT , the fundraising has lasted over 1.5 years while raising significant funds—ranging from $214 million to $376 million, depending on which source you believe.
ZachXBT slams BlockDAG for prolonged fundraising
Concerns about BlockDAG’s legitimacy have been raised by quite a number of analysts, and Zach claims many community members have been tagging him to get him to investigate the project.
Zach claimed this was why he was finally speaking up after all this time, because BlockDAG has had a lot of time to do damage.
“I hope your team realizes that BlockDAG Network is a fake project/investment scam that has held a fundraising phase for 1.5+ years that’s supposedly ending ‘soon’ while regularly transferring investor funds to various exchange accounts and marketing fake numbers to increase retail fomo,” he wrote.
The post was a response to a May 13 tweet from LBank. The tweet revealed the exchange’s plans to list BlockDAG’s token (BDAG), but it did not specify when it would happen — a vagueness that has become a unflattering characteristic of the project.
Zach implied that Lbank may have been paid to list the token, as he revealed he received an offer in his X DM from BlockDAG itself. He shared a screenshot of the chat where he was offered USDT to promote the project with a pinned post that he would be required to keep up for a day.
Is BlockDAG a scam?
It depends on who you ask. While BlockDAG claims to be the next big Layer-1 blockchain, with its claims of nearly $300 million raised and major brand partnerships, there are several factors causing many to suspect the project may be more hype than substance.
Some of the red flags that have been pointed out include how it has a big advertising budget but minimal GitHub activity, with near-empty repositories, and real infrastructure progress is hard to track.
Elements of the whitepaper also appear very similar to Kaspa’s, forcing some to accuse it of recycling documentation rather than proposing true innovation.
There has also been a surge of impersonator and scam fundraising sites, which security analysts say can drain wallets upon connection, with reports from X users who say they have been scammed.
ZachXBT claims users have tagged him to intervene with BlackDAG. Source: @zachxbt
Even Reddit users have sounded the alarm, with one user highlighting how ridiculous it is for a legit company to force anyone to pay a fee or tax just to withdraw money.
“That’s just a scam to suck more money out of you,” the user wrote.
All that is not to say BlockDAG does not tick some checkboxes in terms of at least appearing legitimate. There have reportedly been audit reports, a testnet, and hardware prototypes, things supporters highlight as signs of a serious project.
However, without public on-chain fundraising proof, live token listings, or reusable code, investors are being cautious.
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