The Zelaacoin Scandal

John Wick

Sahil Arora & Zelaacoin (ZLC) SCAM alert

Blockchain

First of all, the ZelaaCoin is a simple ERC-20 token created on the Ethereum blockchain. Everyone could create such a token with basic knowledge and without any (significant) cost. Zelaacoin doesn’t have its own blockchain, it is just a token:

https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244

In a normal ICO, an investor would send his or her ETH to a smart contract and that smart contract will send the equivalent amount of tokens back to that ETH address until the smart contract runs dry and the ICO is done. In this case: The Zelaacoin token contract (smart contract) has been emptied completely and the ICO sale doesn’t use the smart contract as a way for distribution (1). Zelaacoin itself sends out transactions manually from their own wallets.

· Only 113 different addresses own 100% of these tokens (2).

The amount of ZLC that has been sold is false and is not based on the smart contract. In that case the ICO would be sold out (100%; see 1)

Even if we would assume that they preferred to fill in those numbers manually. The numbers are still false, because Zelaacoin owns more than 89 Million themselves. The amount of ZLC that has been ‘sold’ is way lower in real life (see next page).

(Source: https://www.zelaacoin.com/)
Date: 15 October 2018

Token holdings

Below you will see a pie chart of all current ZLC-token holders. The top 5 Addresses combined own 78.5% of the total supply (78.5 Million ZLC):

(Source: https://etherscan.io/token/tokenholderchart/0x6be66252c14915e2a4f7e9621bc17365c4f35244)

· The majority of the tokens (55% of the tokens, equivalent to 55 million tokens) is in hands of one address with a single transaction (170 days ago). Those tokens haven’t moved since then. Tokens came from address: “0xbb..”, the current 7.4% token holder. Source: https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244?a=0x2c44af47baeb05a296c7dd7f13407b79b65a43d0

· Second largest holding is the 10% token holder. Again, single transaction (99 days ago), from the same token holder address: “0xbb..”. Source: https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244?a=0xa73d9021f67931563fdfe3e8f66261086319a1fc

· Third largest holding (7.4%) is address: “0xbb50..”, sends out a large number of large volume transactions. Source: https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244?a=0xbb502303929607bf3b5d8b968066bf8dd275720d

· The fourth holding (3.5%) is address: “0x52..”, gets 34 almost identical transactions of 116,279.06 ZLC from our fifth biggest holding (the 2% holding; address: 0x54f9..). Source:

https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244?a=0x529742906f22a03f0062de1059c85d6881a21d85

· The Fifth holding of 2% is address: “0x54f9”, large amount of transactions (201 TX).

https://etherscan.io/token/0x6be66252c14915e2a4f7e9621bc17365c4f35244?a=0x54f994a44b4708ce146912cab30caabe7a3c922b

update: this contract has been emptied yesterday, just 1% now and moved down to position 13. This address is connected to the ICO deposit address.

As you can see on the ZeeWallet website, the ETH deposit address is:
0x33e3FFD74D98a688a3bC48907D0a8102f5793379. (see the image)

If we search for the deposit address (0x33e3FFD74D98a688a3bC48907D0a8102f5793379) on the Etherscan website, we see that this deposit address is linked to the address: 0x54f994a44b4708ce146912cab30caabe7a3c922b. (Transactions between the deposit address, and the 0x54…addresss)

Do you remember this address (the 0x54…) from the pie chart we gave you earlier in this document? No? No worries! Here we will give it again, with proof that there has took a transaction place between the deposit address and the 0x54…address) (link for transaction proof: https://etherscan.io/tx/0x26854f19d1d8dfdcbffc3376c55602848e4ff34bb3a1fbc04894ef5b881b3ecb)

At this image you could see under the tab “Code”, you could see the tokenwallet is 0xbB.. (0xbb..). When we search for that wallet in Etherscan, we see the most of the transaction are going via the Zelaacoin smart contract named 0x6be… When you click on that contract you get another page which let you see that this contract is linked to the 0x54… wallet.

Furthermore the 0xbb… wallet did that single “monster” transaction of 55.5 million ZLC tokens too.

Or… the other “monster” transaction of the 10% holding.

Or the double transaction to the 0x54… wallet

Conclusion

Even the 30% (bonus fund, Bounties, Project team and Partners/advisors) doesn’t justify the holding of 55% in a single wallet. That wallet on its own should be the core phase of the token sale and we are not even talking about the other major holdings that are connected to Zelaacoin in this case. We have to question ourselfs how much of those tokens are really sold right now and how much of it is actually been held by Mr. Sahil himself.

Even if you still somehow believed that this tokensale is legit and ignore all the red flaggs (single entity invested close to $54.8 Million; insane!). We would still be talking about poor distribution of tokens. That is a liability of its own.

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