Faze Crypto Scam is the latest incident in the social media space that has managed to capture the attention of the regulators. Faze clan is a name which is familiar to gamers all around the world. The clan mentioned above is also involved with Esports and their team consists of people that are influencers.
Few days ago, a few people from the Faze clan started promoting a new crypto token called “Save the kids”. This coin was promoted heavily all over social media platforms and some big names in the gaming sector also hyped the concept.
As expected, the token went to the moon on the launch day and eventually plummeted way harder than anyone imagined. Tokenomics suggests that the main reason behind the downfall of the price was caused by the whales.
It goes without mentioning that as the so-called influencers dumped their coins, the price accelerated towards the south. Now, the only ones that are stuck are the retail crowd that got involved with the asset without fully understanding the consequences. As of now, there are no active lawsuits against anyone involved.
Nonetheless, the situation is getting heated and things might get too tight in the near future. If you want to know everything that has to do with this coin and the drama unfolding on social media sites, then read till the very end.
Faze Crypto Scam Background Story
Faze clan is a group of gamers that are very active in E-sports. They entertain people by displaying their gaming skills. People that have joined this group have huge following and their Twitter and Instagram following speak for itself. This clan is also an incubator of influencers, but the point people need to understand is that they did not have anything to do with the Save the kids token.
Faze Clan has already suspended 4 members that were involved with the crypto non-sense. Influencers on Tiktok and Twitter are doing a lot of questionable things and they seem to have a vested interest in the crypto world.
While there is nothing wrong with promoting something to an audience, it is a sin to market harmful financial instruments wherein conflict of interest is present. At the time of publishing this article, top influencers have deleted their posts about this coin and are trying their best to act like it never happened.
Thanks to the internet archives, the messages can be seen and few people on YouTube have even talked about it. Retail side is the one that has experienced the pain due to this scam.
So, next time just because you see a few people talking up a coin, never invest in it. Always use risk management and as a general rule, never trade any coin that does not have derivative markets.
Get in touch with our affiliated Cryptocurrency Forensic Specialists at CNC Intelligence for free by filling out the form below.
Pump and Dump Scheme Explained
Pump and dump schemes have been around for ages now. In the olden days, it was easy for con-artists to get away from this kind of scheme as information was not that freely available to everyone. However, now the entire landscape has changed, but sadly the saga still continues.
In simple words, pump and dump of a stock or a coin occurs when promoters of the underlying instrument artificially create demand to drive up the prices while holding a sizeable position. Once the demand shoots up, the price will always tend to follow and the price action will never respect any normal technical analysis norms.
Note that the artificial demand created will have a very short lifespan. To make the best out of the situation, insiders will sell in the equilibrium levels and exit the scenario. As price experiences a reversal, the crash is always going to be brutal. Most people will be stuck with illiquid instruments and the execution delays are going to be massive.
Scammers love cryptocurrency markets because they are still vastly unregulated. New tokens are hitting the markets on a daily basis and the room for manipulation is huge. Faze Crypto Scam is still an allegation for the most part.
There are many reasons to believe that the people involved have replicated the exact same thing as pump and dump. However, till the matter reaches the court of law, we just have to use common sense and use cautious approach towards the issue at hand.
Save the Kids Token and Faze Crypto Scam
Cryptocurrencies are without doubts the best thing that has happened to the finance sector in a long time. Blockchain technology is truly something that brings a lot of transparency and efficiency to the table. While the experts and the institutions know and realise the power of the cryptocurrencies, the retail side is going crazy for it without understanding the complications.
Save the kids token was marketed as a coin that truly helped children and helped diversify the wealth in a much better way. Of course, the narratives behind this coin are flattering and an emotional element is involved for the most part.
The thing you need to notice is that there was never reliable evidence to prove anything. A lot of influencers with considerable follower count also promoted this coin and called themselves “Ambassadors”. The funny thing is that this coin had way too many Ambassadors and none of them were willing to put their reputation on the line.
On the launch day, due to the hype created online, this token was up by more than 60%. At first, the price jump was rejoiced as it instilled confidence. However, the following day, the coin crashed and till this date, it has not managed to find a solid support level. There are a lot of rumours and theories about what went wrong?
We strongly believe that the whales in the top management liquidated their positions and dumped their coins on the market. The influencers certainly made a lot of money by promoting the coin and by trading it.
Sadly, the people that suffered immense losses are none other than the retail crowd. A lawsuit might happen soon, but presently, there are no investigations being carried out. The Faze Crypto Scam once again shows how vulnerable people are and it highlights the need for regulation in this sector.
Tokenomics
Tokenomics as the name suggests is nothing more than a way to analyse token economy. It mainly helps track the distribution patterns and the way new coins are generated. If you are truly into cryptocurrencies, then this is something you need to know at any cost. The good thing about blockchain is that no one can truly hide their activities with it.
Tokenomics of this coin revealed a few disturbing things. First and foremost, it was clear that from the inception the coin was dominated by very few people. Massive control over supply always invites trouble. For the whales, the domination factor is a good thing because they can be in control of the price.
However, for the retail side, concentration of coins is a nightmare and they will be vulnerable to huge price swings. Moreover, leverage worsens the impact and often when whales decide to liquidate, they will cause huge panic in the market.
Save the kids token also went down mainly because of the way the distribution worked and there is more than adequate information available to justify this statement. Now, as you understand the importance of price stability, scalability and governance, make sure that you deal with the ones that are transparent about the things mentioned above.
Coffeezilla and Cease and Desist Letters
Coffeezilla’s YouTube channel is popular. Before he came to the spotlight, a lot of people were exposing scams online. However, this fellow took it to a whole another level. His channel does not expose a few small scams or cyber crimes, instead he focuses on going after the big con-artists that make millions by misleading the public.
Plus, he has a wild humorous side too. Not to mention, his channel has tens of millions of views and his subscriber count is racing towards half a million. Using every metric available out there, we are pretty sure that he will reach 500k subscribers within a couple of months.
Coffeezilla exposed the Save the kids plot and Faze Crypto Scam on his channel. As the video was viral, some influencers made response videos and to follow up Coffeezilla did a podcast style video which was more than 30 minutes long. Frazier Kay even sent a legal notice to
Coffeezilla and demanded him to take the video down. The notice contained few aspects such as defamation claims and misleading information accusations. If you want to see the full document, then checkout @coffeebreak_YT on Twitter.
Cease and desist letter is often misused and few people use it as a tool to silence the issues. Thankfully, this YouTuber knows his way around the law and that gives him immense leverage. Until a final verdict comes out, everything associated with this case will be driven by pure speculation. So, apart from the official channels, never believe any other source.
Faze Crypto Scam Promoters and Developers
Faze Crypto Scam does not involve everyone from the Faze Clan. A lot of people did promote this coin and after the crash, most of them deleted the relevant costs and tried their best to bury the matter. Thankfully, by the time influencers could delete the post, few investigators archived them and have made it available to the public for free.
Influencers that deleted the posts said that it was an accident and apparently a miscommunication is the contributing factor. Names of a few developers behind the project are available, but it is almost impossible to crosscheck all the information they display on their official website.
As far as names are considered, people that were hyping this coin from the initial days were Faze Kay, Faze Jarvis and Rice Gum. Note that there are probably dozens more, but due to insufficient data, we cannot list all of them. In case you are wondering, know that every person involved has got a pretty good alibi and it is upto you to decide whether you believe in their claims or not?
Legal Consequences
Pump and dump schemes will always have a nasty end. The people affected by schemes like this one will obviously opt to choose for the legal battle. Class action lawsuit is also a possibility. All the parties involved will have a reasonable legal team behind them. Process to tackle the case is a long one and it may not be suitable for everyone.
Many crypto YouTubers have talked about the Faze Crypto Scam and have expressed that a lawsuit might be coming in the near future. However, till now there isn’t any evidence to suggest legal amplification yet.
Nonetheless, more authorities are showing an interest in this matter and things might get heated soon. If you are one of the retail investors that has lost money because of this incident, then take proper action.
Get in touch with our experts via the contact form and let us plot out an exact course of action for you. From consultation to literally everything, all of our services are offered for free and we will do our best to be of assistance to the public.
Public Reaction
The Faze Crypto Scam involving save the kids token got a lot of attention. Masterminds behind this coin used almost every available resource with great efficiency and it indeed turned out great for them. People that lost their money have expressed their anger in an aggressive manner.
On Reddit, you can find the agony of the users and the way they have shared their opinion paints a very clear picture. From different sub-sections, we have gathered a few comments for you. Check them out and see for yourself what the general consensus says.
As a huge crypto head this is the stuff that kills me. There are real hard working people in crypto and people like myself who believe crypto is the future, but man the last year has made me sick, coins are made and launched in 20 minutes, promoted by people like Kay and people with a blue tick who completely scam people and hurt the real community of crypto. Faze Kay knew what he was doing and deserves bans, for anyone thinking of investing in coins, dont invest in coins named “safe” “moon” or any shite like that, DYOR and if an influencer is telling you to buy a coin its because they are invested and they want to make money. Hope these guys get everything that is coming to them.
I mean the dude’s right, crypto will never see a mainstream legitimate future. Unregulated currency like crypto just leads to pump and dump schemes like this, crypto’s value is based on literally nothing but people’s faith in the coin and unlike stock, there’s no quarterly’s or whatever to look at to back your trust in a coin. Hence why there’s so much volatility in crypto because it’s value is always going to be tied to whenever people expect bubbles to form and pop. And historically its true that cryptocurrencies inevitably become bubbles or sh**coins. Without regulation there’s no way to stop volatility and prevent pump and dump coins but the whole point of crypto is to not be regulated so
Faze Crypto Scam Endnote
The Faze Crypto Scam has been exposed. Influencers are acting clueless and some of them are even playing the victim card. Theories and confusions are numerous and just like every pump and dump scheme, the end victims are none other than the retail investors.
While we cannot comment anything on what may happen regarding this case, we strongly suggest our readers to be cautious. Remember, not every coin will go to zero, but most of them are likely to lose all of their value. So, pick your poison carefully and never underestimate volatility or risk present.
Like we mentioned before, use derivatives to manage the risk efficiently and never trade without a proper exit plan. More importantly, never follow anyone’s advice on social media platforms blindly.
Professional traders rarely use social media platforms and most reputable ones will never reveal their entire approach as it is simply too risky for them.
So, do not look for easy money grabs and focus on value investing if you want to amass wealth. At any phase, if you are overwhelmed, take help from qualified professionals for best results.
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