FaZe Clan, a Los Angeles-based skilled digital sports activities (esports) group, immediately introduced that it has fired its member FaZe Kay in addition to suspended three extra gamers—Jarvis, Nikan, and Teeqo—who have been concerned in selling cryptocurrency token Save the Youngsters (KIDS).
“Now we have made the choice to take away Kay from FaZe Clan, and have suspended Jarvis, Nikan, and Teeqo till additional discover. FaZe Clan had completely no involvement with our members’ exercise within the cryptocurrency house, and we strongly condemn their current behaviour,” FaZe Clan tweeted, including,
“The belief and respect of our followers has been, and can at all times be, our primary precedence.”
A press release from FaZe Clan. pic.twitter.com/HnPXpAoSYX
— FaZe Clan (@FaZeClan) July 1, 2021
The buying and selling of KIDS began in early June. Initially, the token was touted as a charity-focused cryptocurrency based mostly on the Binance Good Chain blockchain and designed to “to present every child probability for a greater life.”
Based on the challenge’s web site, the token is “unruggable” (as a result of “liquidity is locked in for 1 YEAR”) and protected against the so-called “pump & dump” schemes “by limiting the transaction stability at 0.5% per Transaction.” Unsurprisingly, KIDS turned out to be something however.
Shortly after the buying and selling began, the token reached its all-time excessive of roughly $0.0044 on June 10, based on crypto metrics platform CoinMarketCap. Nevertheless, a large sell-off quickly adopted, collapsing KIDS’ worth to about $0.0011. At press time, KIDS is buying and selling at round $0.0013.
Not kidding round
Aside from FaZe Clan members, KIDS was closely promoted by a number of common “influencers” resembling Ricegum and Sommer Ray throughout varied social media. A few of them have reportedly deleted the corresponding Twitter posts—together with these selling different crypto tasks—after the KIDS dump.
It’s not totally clear why Kay was outright fired from FaZe Clan whereas the opposite three simply received suspended.
Based on investigative YouTuber Coffeezilla, Kay dumped all of his KIDS tokens virtually instantly after the buying and selling began, implying that this was his plan from the get-go. Up to now, Kay additionally reportedly caught to this scheme when he was selling different crypto tokens and offered his whole caches—which he was given throughout pre-sale intervals—instantly.
Different FaZe members, nevertheless, have been much less apparent of their actions, promoting simply a few of their tokens and retaining the remainder. This, based on Coffeezilla, might point out that they won’t have outright malicious intentions whereas selling crypto tasks.
Notably, KIDS’ “anti-whale safety”—a mechanism that ostensibly prevented customers from promoting greater than 20% of their holdings in 24 hours—was additionally modified proper earlier than the token buying and selling began.
By analyzing the good contract’s code, Coffeezilla has found that the 24-hour restrict was finally modified to 1 minute—implying that KIDS’ creators deliberate to dump their tokens from the very starting.
Mockingly, Coffeezilla estimated that FaZe Kay has earned solely someplace within the ballpark of $30,000 from the entire ordeal—a sum that’s hardly value his status and the spot on the well-known esports group.
You possibly can watch the complete video right here:
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