Bittime - The NFT industry was shocked by alleged fraud cases committed by the Rabbit company. YouTuber and cyber investigator, Coffeezilla (Stephen Findeisen), accused Rabbit of planning and covering up an NFT fraud scheme.
Coffeezilla Releases a Video
Through a video published on May 21, 2024 on the Coffeezilla YouTube channel, Findeisen revealed that Rabbit, previously known as Cyber Manufacture Co, had raised $6 million in funding for an NFT project called Gama.
However, Rabbit's founder, Jesse Lyu, recently stated that his company would never get involved in crypto assets and called Gama a small project for fun that he created during the COVID-19 pandemic.
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Reveal Rabbit's Past
Findeisen then showed footage of Lyu explaining Gama's grand vision, which raised questions about the actual use of the funds raised from the project.
Not only that, Findeisen also highlighted Rabbit's R1 product which was suspected of experiencing a similar problem, namely excessive promotion (overhyping). In fact, some people think that R1 is just an AI fraud scheme.
Rabbit Denies Involvement in Fraud
Responding to Coffeezilla's accusations, Rabbit provided clarification. Lyu explained that Gama was just a side project he created during the pandemic and that he had abandoned the project after the game was released as open-source.
Although Lyu downplayed Gama as a small project, Findeisen revealed footage featuring Lyu explaining his big ambitions for the NFT project.
In the recording, Lyu said that his company poured millions in funds for Gama so that it could become an extraordinary project. Lyu also said that NFTs are just the beginning. After NFT, Rabbit has a big idea, namely Gamaverse.
It was these promises that made Findeisen question the use of the $6 million raised for Gama. According to Coffeezilla, Rabbit is adamant that the funds are only used for NFT projects.
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Allegations of R1 Fraud Strengthen
However, Coffeezilla believes that this is something to be wary of because R1, Rabbit's newest product, is built on the foundation of Gama. Findeisen also highlighted the R1 product which is currently viral with allegations of excessive promotion.
Many promises made regarding Gama were not fulfilled. This is relevant to R1 not only because the product was built on the foundation of that scam project, but also because R1 was heavily promoted in a similar way.
Apart from Coffeezilla, other parties also doubt the credibility of Rabbit's R1 product. On January 14, 2024, WeGPT founder and CEO, Josh Olin, via a tweet on X accused the Rabbit project of being a fraud scheme. Olin described the company's products as an attempt to gain quick profits by defrauding investors.
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Beware of NFT Fraud!
NFT industry players and investors need to be careful of potential NFT fraud. In-depth research and extreme caution before investing in an NFT project is absolutely necessary.
The alleged fraud revealed by Coffeezilla against Rabbit is an important reminder to always verify information before getting involved in an NFT project.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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