Crypto-sleuth ZachXBT at the moment shared messages exchanged between SolChicksNFT CEO William Wu and COO Lewis Grafton. The dialog reveals that the challenge misplaced treasury funds value round $20 million because of the implosion of the Terra stablecoin (UST) in May 2022. What’s extra, the involved folks determined to not disclose these particulars to their customers.
These messages additionally highlighted that no one on the group had any technique to deal with or include UST’s collapse. In truth, no motion in any respect was taken to deal with the disaster.
SolChicksNFT confronted the warmth of UST collapse
It was in May this yr that the Terra stablecoin system collapsed as massive investors started promoting their tokens. The transfer contributed to an enormous drop within the worth of cash. While the worth of UST fell to $0.10, LUNA’s worth fell to virtually zilch on the charts.
UST lost a market cap of round $45 billion inside per week within the ensuing massacre, resulting in a world crash out there. The management of the Terra system hoped to purchase Bitcoin reserves to purchase extra UST and LUNA cash in order that their costs could be stabilized, however the plan didn’t work.
Right now, authorities across the globe are investigating Do Kwon, the CEO of Singapore-based Terraform Labs, the father or mother firm of crashed stablecoin TerraUSD. Multiple crypto-firms equivalent to Celsius, Voyager, and Three Arrows additionally collapsed on account of their publicity to the Terra system.
In response to ZachXBT’s request for a remark, the COO replied,
“On UST- we discussed and disclosed it with our largest private holders but decided that it was in the project’s best interest not to make a public announcement and risk unnecessary concern given that we still have more than 5 years of runway and we have zero leverage.”
“It’s disturbing they think retail doesn’t need to know & only large investors do,” ZachXBT responded on Twitter.
Previous situations of misleading advertising and marketing
ZachXBT additionally shared a Twitter thread from December 2021, one which talked about issues round SolChicksNFT participating in “deceptive marketing (undisclosed ads/using bots) and poor management.” The thread listed shopping for pretend Twitter followers, Discord bots, and pretend Reddit advertising and marketing, along with shopping for undisclosed shills from random botted accounts.
This 2021 thread additionally revealed that the SolChicksNFT challenge raised cash from LD Capital, a VC blocked by the challenge.
SolChicksNFT readying for clarifications
Catheon Gaming, the blockchain firm proudly owning the SolChicksNFT challenge, condemned the “bad actors” leaking confidential firm data for publicity. ZachXBT’s actions trigger actual hurt, the corporate assertion learn.
Here, it’s value declaring that Catheon Gaming scheduled an AMA later within the day to make clear its place.