If you've been scrolling through crypto Twitter lately, you might've stumbled upon a hilarious yet eye-opening thread from @bitsandbips that uses a classic Scooby-Doo meme to call out some shady fundraising tactics in the blockchain space. The post, which has garnered thousands of views, pulls back the curtain on ZeroStack's supposed $401 million raise for an AI-focused blockchain treasury. But as the meme suggests, it's not what it seems – only $13.7 million was actual fresh cash, with the rest being clever token swaps and paper valuations.

The Viral Thread Breakdown

The thread kicks off with that iconic Scooby-Doo unmasking scene, where a ghostly $401M raise is revealed to be a tied-up $13.7M in cash. Posted by Bits + Bips, part of the Unchained podcast crew, it dives into how ZeroStack – formerly Flora Growth Corp. (NASDAQ: FLGC) – pitched itself as the "MicroStrategy of the AI era." For those new to the term, MicroStrategy is famous for stacking Bitcoin as a corporate treasury asset, and ZeroStack aimed to do something similar but with AI blockchain tokens, specifically focusing on 0G, the native token of the Zero Gravity blockchain.

But SEC filings tell a different story. According to the Unchained Crypto article linked in the thread, the $401 million figure breaks down like this:

• Fresh Cash: Just $13.66 million from investors like Dao5 and Abstract Ventures.
• Recycled Tokens: $22.88 million in Solana tokens from another digital asset treasury (DAT) company.
• In-Kind Contributions: $150 million worth of 0G tokens from Zero Gravity Labs.
• Warrants: Over $215 million in pre-funded warrants, valued at a pre-launch price of $3 per 0G token.
• Founders' Tokens: An additional $300 million in tokens committed by the founders, representing 10% of the total supply.

This setup creates what experts call a "liquidity loophole." Normally, tokens for founders and early insiders are locked up for years to prevent quick dumps that could crash the price. Here, by swapping them for equity in ZeroStack, insiders get early access to liquidity, potentially at the expense of retail investors.

Token Performance and Red Flags

Launched on September 23, 2025, the 0G token debuted at $5 but quickly tumbled. As of now, it's trading around $2.80, down about 43% from its launch price. The thread highlights this drop with a cheeky chart titled "Zero Gravity Falling Back to Earth," showing the price's downward trajectory.

Experts quoted in the article aren't mincing words. One anonymous investor labeled it "the ultimate grift," pointing out the arbitrary $3 per token valuation that gave the project a $3 billion fully diluted value before it even went live. This kind of inflated hype is reminiscent of many meme token launches, where projects pump up their fully diluted valuation (FDV) to attract attention, only for the token to dump once reality sets in.

Why This Matters for Meme Tokens

At Meme Insider, we focus on the wild world of meme tokens, and this ZeroStack saga fits right in. Meme tokens thrive on hype, viral marketing, and community buzz – much like how ZeroStack used bold claims to grab headlines. But as this thread shows, when the meme unmasking happens, it reveals common pitfalls: overvalued tokens, insider advantages, and low real liquidity.

In the meme token ecosystem, especially on chains like Solana, we've seen similar stories. Projects announce massive "raises" or partnerships, but dig deeper, and it's often just token allocations or swaps that don't bring in new capital. This can lead to rug pulls or slow bleeds as insiders exit. For blockchain practitioners, it's a reminder to always check SEC filings, on-chain data, and tokenomics before diving in.

If you're building or investing in meme tokens, take a page from this: Transparency builds trust. Inflated numbers might get you short-term attention, but sustainable growth comes from real value and community alignment.

Check out the original thread on X for the full scoop, and stay tuned to Meme Insider for more breakdowns on crypto's meme-worthy moments. What's your take on this unmasking? Drop a comment below!