Nfts
Rabbit AI Company Under Fire After YouTuber Reveals Alleged NFT Scam
May 22, 2024 by Diane Ambolis
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The world of cryptocurrencies and NFTs continues to be riddled with accusations of scams and shady practices. Recently, popular YouTuber Coffeezilla (real name Stephen Findeisen), known for investigating online fraud, turned to artificial intelligence (AI) company Rabbit. In a video uploaded on May 21, 2024, Coffeezilla accuses Rabbit of orchestrating
The world of cryptocurrency and NFTs continue to be screened with accusations of scams and shady practices. Recently, popular YouTuber Coffeezilla (real name Stephen Findeisen), known for investigating online fraud, turned to artificial intelligence (AI) company Rabbit. In a video uploaded on May 21, 2024, Coffeezilla accuses Rabbit of orchestrating an NFT scam and attempting to distance himself from his past involvement in the cryptocurrency space.
The crux of Coffeezilla’s argument hinges on Rabbit’s alleged connection to a failed NFT project called Gama. According to the video, Rabbit, formerly known as Cyber Manufacture Co., raised a significant sum – $6 million – to develop Gama. Coffeezilla presents evidence suggesting that Gama was more than just a “fun little project,” as Rabbit founder and CEO Jesse Lyu downplayed. The video includes recordings in which Lyu expresses big ambitions for Gama, including investing millions to make it a “next-level experience.”
However, Gama appears to have fizzled, leaving investors in the lurch. Coffeezilla highlights the lack of product or substantial development of the project. This, coupled with Lyu’s reported attempts to completely downplay Rabbit’s involvement in crypto, paints a suspicious picture. Lyu reportedly said the company would “never touch crypto again,” a stark contrast to his previous enthusiasm for the Gama project.
Also read – What are rug pulls? Is this a common NFT scam or a crypto crime?
Coffeezilla’s investigation raises several critical questions about Rabbit’s transparency and commitment to its investors. Here are some key points to consider:
- Was Gama a legitimate project or a pump and dump project? Coffeezilla suggests that the lack of delivered product and Lyu’s dismissive attitude towards Gama raises concerns about its legitimacy.
- Is Rabbit trying to distance itself from its crypto past? Lyu’s reported comments about avoiding crypto altogether seem contradictory to his previous involvement with Gama. This raises questions about Rabbit’s overall transparency.
- What are the implications for Rabbit’s AI product, Rabbit R1? Coffeezilla suggests that Rabbit’s alleged NFT transactions raise concerns about the credibility and trustworthiness of their AI product, Rabbit R1.
The allegations sent shockwaves through the tech and crypto communities. Many are calling for Rabbit to respond directly to Coffeezilla’s claims. The company is yet to release an official statement on the matter.
Here are some potential consequences for Rabbit if the NFT scam allegations gain traction:
- Tarnished reputation: A proven NFT scam association could seriously tarnish Rabbit’s image and erode investor confidence in their AI product.
- Legal consequences: Depending on the nature of Gama and how it was marketed, Rabbit could face legal challenges from disgruntled investors.
- Impact on the AI Industry: If Rabbit were found guilty, it could cast a shadow over the credibility of the entire AI industry.
Coffeezilla’s presentation serves as a cautionary tale for potential investors in the NFT and crypto space. He emphasizes the importance of thorough research and critical thinking before investing in a project. Additionally, it highlights the need for transparency and accountability within the tech industry.
As the story unfolds, here are some key developments to watch for:
- Rabbit’s official response: Will the company respond to the allegations and provide a clear explanation of its involvement with Gama?
- Independent investigations: Will other YouTubers or journalists take up the investigation and corroborate Coffeezilla’s conclusions?
- Potential legal action: Will investors take legal action against Rabbit if evidence of wrongdoing is found?
Only time will tell what the ultimate ramifications will be for Rabbit. However, Coffeezilla’s investigation has undoubtedly sparked a conversation about accountability and transparency in the ever-evolving world of AI, NFTs, and cryptocurrencies.