At first glance, ZKasino looked like any other crypto project. It had announced a figure of $350 million valuation for its Series A round, backed by $26 million from investors including crypto exchange MEXC. The smart contracts were checked by the well-known security company Certik (to a initial pass by ChatGPT). The project’s testnets were operational.
And so, by the time the project launched, more than $33 million worth of ether had been bridged by more than 10,000 participants in ZKasino’s network in the hopes of earning additional $ZKAS when the protocol launched. After all, the project promised that the airwaves could be returned at the request of users.
However, there were warning signs. A flood in Dubai caused the ZKasino event to be cancelled a thingbut allegations of mismanagement had been made against the team former colleagues and blockchain sleuth ZachXBT in the past. A user representing the ZigZag exchange claimed that the team behind ZKasino stole the initial money for the project from ZigZag’s coffers. Among other allegations of unpaid contractors and shady business practices, in one memorable incident, ZKasino founder known as Derivatives Monke had also posted an incredibly graphic video to make a sarcastic joke, although she later apologized.
When ZKasino finally launched yesterday after several delays, investors were stunned to learn that plans had changed. Instead of being able to redeem their ether as planned, it was automatically allocated to $ZKAS tokens, as a “favor” to “provide a seamless transition and a superior user experience,” according to the project. announced.
Users revolted at news of the change, noting that language on ZKasino’s website promised ether refunds is changed and now users’ $ZKAS would vest over the course of fifteen months. Accusations that ZKasino is a carpet puller have been ripped from thousands of accounts as personal information about Derivatives Monke is spread online by irate investors hoping to get their capital back.
Post-launch, token launch pads Ape terminal And AIT launch pad canceled ZKasino’s IDO, while exchange MEXC canceled its $ZKAS mention. However, most investors could only view the blockchain because theirs was $33 million worth of ETH deposited in strike platform Lido.
Amid the commotion, the team remained largely silent, although Derivatives Monke took his time yesterday insult a critic on X. Today the project has achieved a relatively benign result announcement that it plans to implement EIP-3074 when the protocol change goes live on Ethereum. Derivatives Monke promised to do that, quoting the message on X keep building.
