FaZe crypto scam: Another influencer-led ‘pump & dump’ scheme?

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FaZe crypto scam: Another influencer-led ‘pump & dump’ scheme?

 FaZe crypto scam: Another influencer-led ‘pump & dump’ scheme?
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As cryptocurrency gains wider mainstream acceptance, ‘pump and dump’ scams have also been rising in number in the crypto market, which remains largely unregulated.  

Recently, a handful of social media influencers reportedly misled their followers using a meme-inspired token to make big money.

Members of an e-sport group called FaZe Clan have been accused of pumping up an altcoin, ‘Save The Kids’, via their YouTube channel, which has more than 8.7 million followers.

In response, the Los Angeles-based organization is said to have fired one of its team members, FaZe Kay, and suspended three others, namely Nikan, Javris, and Teeqo. In its statement, posted of their Twitter account, the group has denied any involvement in the crypto scam.

The said members of the group were reportedly doing paid promotions for the altcoin. Later, they allegedly dumped their holdings in the token, which then slumped by almost 70 per cent in the last three weeks. 

The rising numbers of meme and scam crypto projects have been largely troubling investors, especially the amateur ones. Earlier, a decentralized project’s native token, Titan, tumbled to zero after getting pumped to around US$ 60 apiece on June 16.

Billionaire entrepreneur Mark Cuban, a big-time investor in the cryptocurrency market, is also said to hold an undisclosed investment in this DeFi protocol token. 

Previously, Tesla chief Elon Musk has been accused of pumping meme coins like Baby Doge, Dogecoin and Sibha Inu, as his tweets have been seen to impact token price trajectories drastically. 

What is ‘Save The Kids’ & FaZe Clan?

FaZe Clan is a digital gaming firm that organizes e-sport sessions on its social media platform to attract players who play games like Call of Duty, Fortnite Battle Royale, Counterstrike, PUBG, and others.

Founded in 2011, the organization has more than one billion views on YouTube as of May 14.  

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SaveTheKids ($KIDS) is said to be a charity token developed using Binance Smart Chain. The project claims to raise money to help poor school kids in Africa.

Its native token is KIDS, and it has a total supply of one billion coins. Every transaction through KIDS is chargeable at a three per cent fee to support its operations and charity for kids. The token traded flat for the last 24 hours. 

The project team partnered with FaZe members to increase its visibility across social media platforms, but eventually, this strategy backfired as its ambassadors dumped their investments. 

Please note: The above constitutes a preliminary view and any interest in stocks and cryptocurrencies should be evaluated further from an investment point of view.

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