Arbitrum

Nitro

ZachXBT

Read

<div class="protos">
 Following a month-long ‘bridge-to-earn’ program, crypto <a rel="noopener noreferrer nofollow" title="Gambling" href="https://thebittimes.com/tag/gambling.html">Gambling</a> platform <a rel="noopener noreferrer nofollow" title="ZKasino" href="https://thebittimes.com/tag/zkasino.html">ZKasino</a> launched its own network on Saturday. However, the announcement included a nasty surprise.
 In what ZKasino referred to as a ‘seamless transition,’ users were informed that “All bridged Ethereum has been converted to our native gas token, ZKAS… as a favor to our users.”
 Not only was the 10,505 ETH, (worth $33 million at the time of writing) converted to the project’s own token without forewarning, but the tokens themselves would not be available to <a rel="noopener noreferrer nofollow" title="users" href="https://thebittimes.com/tag/users.html">users</a> right away. “Keep in mind that the majority of ZKAS is vested over 15 months, only 5% is distributed out immediately.”
 The ‘bridged’ ETH was sent to a multisig address controlled by the team. The sum was then deposited into Lido a few minutes later where it earns over $1 million per year, given the current staking yield of 3.2%.
 The move has been branded by much of the crypto community as a ‘rug pull,’ especially given the multiple previous assurances that the funds would be accessible for withdrawal once the new network went live.
 The site’s bridge webpage (now offline) previously stated that once the chain was live, funds would be ‘returned and can be bridged back.’ Deleted tweets and audio clips confirm the same.
 <h2 class="wp-block-heading" id="h-communication-breakdown">Communication breakdown</h2>
 On Friday evening, a user asked why the website’s promise to return ETH had been removed in the <a rel="noopener noreferrer nofollow" title="ZKasino" href="https://thebittimes.com/tag/zkasino.html">ZKasino</a> Telegram group. The chat went ‘on lock’ shortly afterwards, with the simple explanation of ‘No moderator available.’
 <figure class="wp-block-image is-resized"><img decoding="async" loading="lazy" src="https://thebittimes.com/image/getimage/?url=https://lh7-us.googleusercontent.com/KaZK52y_1C9tP6jaMQjVig16YkQKzxwaZHTtRqmqHpB2du2SGal9OhDJvTG7TeGdHFXl87aPyd88BAYeayK0ABkstHaRGH4xkfa8OEFKwXbcoFQqPz5cNTV-qz4N5F9IqlhE-aH5CSWuFZHz9i-DuE0" alt width="610" height="210">
 <figcaption class="wp-element-caption">
 ZKasino’s chat was locked after a user&nbsp;asked&nbsp;why the promise to return ETH had been removed.
 </figcaption>
 </figure>
 The following morning, the use of Chinese in the chat was banned — purportedly because people were hiring hitmen — before the moderator gave up completely: “No point even unlocking the chat,” they wrote.
 ZachXBT raised concerns over the ZKasino team late last year, labeling them ‘proven bad actors.’
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 Not sure why anyone would trust a word from @Derivatives_Ape as him and his team are proven bad actors. 1). Avoided paying money owed to @Pancakesbrah https://t.co/0dybmkr4ne 2). No winners announced for their $200K ‘giveaway’ after 2 monthshttps://t.co/GAec3yFsw1 3).… pic.twitter.com/J9oMiES8mc— ZachXBT (@zachxbt) December 2, 2023
 </blockquote>
 </div>
 </figure>
 Read more: Crypto security firms more concerned with social media clout than the details
 Others pointed out that the project has nothing to do with the various buzzwords that it uses to market itself, such as ‘zk’ (zero-knowledge) technology and ‘EigenDA’ (for data availability). The underlying ‘<a rel="noopener noreferrer nofollow" title="ZKasino" href="https://thebittimes.com/tag/zkasino.html">ZKasino</a> chain’ is instead an ‘an Arbitrum Nitro chain that took two minutes to deploy.’
 The project’s ‘pre-audit’ was conducted by ChatGPT ahead of a full audit by Certik.
 In the wake of the backlash, VC firms have distanced themselves from the team, who avoided engaging directly with criticism, preferring to post a standard marketing tweet that only tangentially refers to ‘noise and FUD.’
 Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;X,&nbsp;Instagram,&nbsp;Bluesky, and&nbsp;Google News, or subscribe to our&nbsp;YouTube&nbsp;channel.
</div>
Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/zkasino-30m-favor-to-users-seamless-transition-or-rug-pull-tbt86506.html">https://thebittimes.com/zkasino-30m-favor-to-users-seamless-transition-or-rug-pull-tbt86506.html</a>

ZKasino $30M ‘favor’ to users — seamless transition or rug pull?

Table of Contents

TheBitTimes

Other articles published on Apr 25, 2024

The Slowdown in the US Economy Puts the FED in Difficulty! When Will Interest Rate Cuts Come? Her...

Why Crypto Prices Are Taking A Dip Today?

Ripple CTO Debunks 'We Don't Need XRP' Rumors

Cryptocurrency Market Observes Notable Price Movements

Bitget Wallet's BWB Points Makes Debut on Whales Market, Ranks Second in 24-Hour Trading Volume (...

Is It Too late To Buy Mumu The Bull? MUMU Price Soars 26% As This New Casino ICO Blasts Past $500...

Join our free newsletter for daily crypto updates!