I consider that there is nothing worse than a project that declares a roadmap and then changes it radically out of the blue. Even in those changes, it carries out suspicious maneuvers that incline one to think that there may be a risk of fraud.
Transparency and trust together are very important for the sustainability of a project where large sums of money will be invested and an entire community is waiting for its development and growth.
Jonathan Petersson | Unsplash
ZKasino carries out controversial maneuver
A transfer valued at 33 million dollars was made to the Lido staking protocol. This large sum came from the investment of a significant number of users, who expected their funds to be returned.
It is estimated that more than 10,000 users have bridged to the network for a total of 10,515 ETH with the intention of getting the ZKAS token. However, that wasn't really what happened and it all led to increased suspicions that something was going wrong.
In my opinion, in that ETH bridge, users unconsciously gave some form of consent for those funds to be used by the platform, even though initially that was not part of the plan. And perhaps that is the reason why the website has undergone significant changes that only worsened the impression of how things were unfolding. ZKasino justified this maneuver by mentioning that it had to be done because the platform did not support ETH.
If one refers to the whitepaper, it can be seen that by bridging ETH to the ZKasino network, the user will receive ZKAS, with 25% of the supply allocated for this process. In other words, by bridging ETH to ETH ZKasino, you should earn some ZKAS until the supply runs out.
The issue is that this ETH was used for other purposes. In fact, if one heads to the bridge, an error 404 will appear. And I assume that if an investigation is carried out at the blockchain level, some irregularities will be found. That's what a cryptocurrency developer did, who found that ZKasino was actually an Arbitrum Nitro network, without what is EigenDA or zero-knowledge technology.
A fraudulent project?
Adding more controversy, the venture capital firm Big Brain mentioned its investment in what was called ZigZag Exchange, having incurred substantial losses at that time. Those founders are now part of the ZKasino team, which somehow emphasizes that fraudulent past to highlight the severity of the matter.
Post on X from Big Brain Holdings
There was previously an announcement of a $350 million investment round involving firms like the aforementioned Big Brain Holdings and others, but also one of the most popular exchanges of recent times; MEXC. However, the latter decided to distance themselves from this round and mention that ZKasino's decisions and actions had nothing to do with them, describing themselves as mere investors.
At this point, the primary concern is to rectify the mistake (if there were no ill intentions) and try to help users recover their ETH as soon as possible. Perhaps with this, trust in the project can be restored. Although at the moment, everything seems to be pointing in the opposite direction.
- Main image edited in Canva.
- I have consulted information in cryptonews.com.
- I have used Hive Translator to translate from Spanish to English.
Posted Using InLeo Alpha
The act from my view is very fraudulent. Already investors are panicking. Even if the whole system are to make refunds, they have opened up a gap for distrust. I only wish they return investors cash and help give blockchain and crypto a good name. Thanks for the update.
I hope that investors will be able to recover their funds. It really is a rather dramatic scenario that could escalate into all sorts of legal situations.
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