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Coffeezilla Exposes Alleged NFT Scam by AI Firm Rabbit

Key Takeaways

  • Coffeezilla accuses Rabbit AI of orchestrating an NFT scam;
  • The company previously raised $6 million for an NFT project called Gama, which failed to meet its promises;
  • Rabbit's current projects, including the R1 product, are suspected of being overhyped and potentially misleading investors.
Coffeezilla Exposes Alleged NFT Scam by AI Firm Rabbit

Crypto investigator Stephen Findeisen, known as "Coffeezilla" on YouTube, has brought to light accusations against the AI firm Rabbit, suggesting the company is involved in a non-fungible token (NFT) scam.

In a video released on May 21, Coffeezilla revealed that the company previously operated under the name Cyber Manufacture Co. and had raised $6 million for an NFT project, Gama.

A few years later, Rabbit's founder and CEO, Jesse Lyu, distanced the company from crypto, stating on Discord that Rabbit would “never touch crypto.”

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Findeisen's investigation included recordings of Lyu from the project's early days, in which he described ambitious plans for Gama, claiming they were investing millions to create a "next-level experience." Lyu mentioned that NFTs were just the beginning, with future plans for a "Gamaverse" and innovative ideas involving clean energy and Gama Coin.

However, Coffeezilla questioned the use of the $6 million raised for Gama, suggesting that the project fell short of its promises and that Rabbit might be built on what was left from this failed project. He pointed out that many of the grand visions for Gama were never realized, raising suspicions about Rabbit's current R1 product:

This is relevant to the R1 not just because this project is built on the skeleton of that scam project, it’s also because the R1 is overhyped in a similar way.

Lyu tried to minimize the significance of the Gama project, calling it a "fun little project" from the COVID-19 pandemic, and claimed to have left it once it was open-sourced.

Findeisen's concerns echo in statements by other people in the industry. On January 14, Josh Olin, founder and CEO of WeGPT, labeled Rabbit’s project a “scam” on X, describing it as a quick cash grab designed to attract investors.

These allegations have cast a shadow over the Rabbit AI company's integrity, prompting calls for greater transparency.

In other news, two individuals have recently been arrested for laundering $73 million in crypto through "pig butchering" scams.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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