AI Firm Rabbit Under Fire After YouTuber Exposes Alleged NFT Scam

AI Firm Rabbit Under Fire After YouTuber Exposes Alleged NFT Scam

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May 22, 2024 by Diana Ambolis
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The world of cryptocurrency and NFTs continues to be riddled with accusations of scams and shady practices. Recently, popular YouTuber Coffeezilla (real name Stephen Findeisen), known for his investigative exposés on online fraud, turned his sights on artificial intelligence (AI) firm Rabbit. In a video uploaded on May 21st, 2024, Coffeezilla accuses Rabbit of orchestrating
Blockchain NFT scam

The world of cryptocurrency and NFTs continues to be riddled with accusations of scams and shady practices. Recently, popular YouTuber Coffeezilla (real name Stephen Findeisen), known for his investigative exposés on online fraud, turned his sights on artificial intelligence (AI) firm Rabbit. In a video uploaded on May 21st, 2024, Coffeezilla accuses Rabbit of orchestrating an NFT scam and attempting to distance itself from its 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 Gama was more than just a “fun little project” as downplayed by Rabbit’s founder and CEO, Jesse Lyu. The video includes recordings where Lyu expresses grand ambitions for Gama, including investing millions to make it a “next-level experience.”

However, Gama appears to have fizzled out, leaving investors in the lurch. Coffeezilla highlights the lack of any substantial product or development from the project. This, coupled with Lyu’s reported attempts to downplay Rabbit’s involvement with crypto altogether, paints a suspicious picture. Lyu has reportedly stated that the company would “never touch crypto” again, a stark contrast to his earlier enthusiasm for the Gama project.

Also, read – What Are Rug Pulls? Are They A Common NFT Scam Or Crypto Crime?

Coffeezilla’s investigation raises several critical questions about Rabbit’s transparency and its commitment to its investors. Here are some key points to consider:

  • Was Gama a legitimate project, or a pump-and-dump scheme? Coffeezilla suggests that the lack of a delivered product and Lyu’s dismissive attitude towards Gama raise 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 dealings raise concerns about the credibility and trustworthiness of their AI product, Rabbit R1.

The allegations have sent shockwaves through the tech and crypto communities. Many are calling for Rabbit to address Coffeezilla’s claims directly. The company has yet to issue an official statement on the matter.

Here are some potential consequences for Rabbit if the allegations of NFT scam hold weight:

  • Damaged reputation: A proven NFT scam association could severely tarnish Rabbit’s image and erode investor confidence in their AI product.
  • Legal repercussions: Depending on the nature of Gama and the way it was marketed, Rabbit could face legal challenges from disgruntled investors.
  • Impact on the AI industry: If Rabbit is found to be culpable, it could cast a shadow on the credibility of the entire AI industry.

The Coffeezilla exposé serves as a cautionary tale for potential investors in the NFT and crypto space. It highlights the importance of thorough research and critical thinking before investing in any project. Additionally, it underscores 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 address 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 findings?
  • 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 within the ever-evolving world of AI, NFTs, and cryptocurrency.